Bitdeer Reported Unaudited Financial Results for the Second Quarter of 2024
August 12, 2024
Revenue of US$99.2 million and gross margin of 24.6%
Adjusted EBITDA of US$24.9 million, up 33.2% YoY
SINGAPORE, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “ Company”), a world-leading
technology company for blockchain and high-performance computing, today issued a letter to shareholders along with its unaudited financial and operational
results for the second quarter ended June 30, 2024.
Q2 2024 Financial Highlights

Total revenue was US$99.2 million, compared to US$93.8 million in Q2 2023.
Cost of revenue was US$74.8 million, compared to US$77.7 million in Q2 2023.
Gross profit was US$24.4 million, compared to US$16.2 million in Q2 2023.
Net loss was US$17.7 million, compared to US$40.4 million in Q2 2023.
Adjusted EBITDA was US$24.9 million, compared to US$18.7 million in Q2 2023.
Cash and cash equivalents were US$203.9 million as of June 30, 2024.
Management Commentary“Our second quarter was marked by strong financial performance and significant progress across all our major initiatives,” said Matt Kong, Chief Business
Officer of Bitdeer. “We reported revenue of $99.2 million, gross profit of $24.4 million, and adjusted EBITDA of $24.9 million, up 5.8%, 50.6% and 33.2%
year-over-year, respectively. We achieved these results despite significant growth in the global network hashrate and the April 2024 halving. This demonstrates
the strength of our differentiated strategy, underpinned by Bitdeer’s commitment to technology and innovation. For instance, our previous R&D investment inour cloud hashrate business contributed a gross profit of $7.3 million with a nearly 60% gross margin in Q2 and helped us generate more revenue for the sameamount of hashrate relative to our peers.”
Mr. Kong continued, “During the quarter, we also made significant strides in our SEALMINER ASIC roadmap. Our acquisition of Desiweminer enhances ourcapabilities by integrating their team with our in-house design team in Singapore. We have energized the first batch of our SEALMINER A1 chips, with mass
production underway and plans to install 3.4 EH/s into our datacenters by year-end. Our second-generation SEAL02 chip initial tape-out wafer delivery from
TSMC remains on track for late September. Upon successful testing, we anticipate ramping mass production by the end of the year. We also have started ourthird-generation SEAL03 chip R&D. In our HPC and AI business, we have deployed the NVIDIA DGX SuperPOD H100 system in Singapore and achieved
100% utilization in July. Additionally, our global power and datacenter infrastructure continues to expand. We announced a 30-year lease agreement for 570
MW of power capacity in Ohio, increasing our total global capacity to 2.5 GW. Our ongoing datacenter projects in the U.S., Norway, and Bhutan are on track,
supporting our ambitious growth plans and solidifying Bitdeer as an industry leader for years to come.”
Mr. Kong added, “Finally, we ended the quarter in a strong financial position with $228.8 million of cash and cash equivalents and cryptocurrencies on hand. As
we gear up for the upcoming bull market, we remain focused on expanding our Bitcoin self-mining capacity, executing our SEALMINER technology roadmap,
and monetizing our impressive 2.5 GW power portfolio for HPC/AI.”
Operational Summary
Three Months Ended Jun 30,
Metrics

2024

2023

Total hash rate under management (EH/s)

22.3

18.8

8.5

6.2

- Self-mining

7.3

3.8

- Cloud Hash Rate

1.2

1.6

- Delivered but not yet energized

-

0.8

13.8

12.6

223,000

199,000- Proprietary hash rate

- Hosting
Mining machines under management- Self-owned

86,00070,000- Hosted

137,000

129,000

Bitcoin mined (self-mining only)
Total power usage (MWh)

628

758

1,192,000

1,136,000

Average cost of electricity ($/MWh)43

41

Average miner efficiency (J/TH)

31.6

33.4

StatusTiming3

Power Infrastructure Summary
Site / Location

Capacity (MW)Electrical capacity- Rockdale, Texas

563

OnlineCompleted- Knoxville, Tennessee

86

OnlineCompleted- Wenatchee, Washington

13

OnlineCompleted- Molde, Norway

84

OnlineCompleted- Tydal, Norway

50

OnlineCompleted- Gedu, Bhutan

100

OnlineCompleted

Total electrical capacity

895

Pipeline capacity- Tydal, Norway Phase 1

40

In progress

Q4 2024- Tydal, Norway Phase 2

135

In progressMid 2025- Massillon, Ohio

221

In progress

Mid-to-late 2025

- Clarington, Ohio Phase 1

266

In progress

Q3 2025- Clarington, Ohio Phase 2

304

Pending approval

Estimate 2026

- Jigmeling, Bhutan

500

In progress

Mid-Late 2025

- Rockdale, Texas

179

In planning

Estimate 2026

Total pipeline capacity

1,645

Total global electrical capacity

2,540

Financial MD&A
All variances are current quarter compared to the same quarter last year. All figures in this section are rounded.
US $ in millions

Three Months Ended
Jun 30, 2024

Mar 31, 2024

Total revenue

99.2

119.5

Jun 30, 2023
93.8

Cost of revenue(74.8)(85.4)(77.7)

Gross profit

24.4

34.1

16.2

Net Income / (loss)(17.7)

0.6(40.4)

Adjusted EBITDA

24.9

26.0

18.7

Cash and cash equivalents

203.9

118.5

130.2

US $ in millions
Business lines

Three Months Ended Jun 30, 2024
Self-Mining

Cloud Hash Rate

General Hosting

Membership Hosting

41.6

12.2

20.6

22.1

- Electricity cost in operating mining machines(20.9)(2.0)(12.8)(15.6)- Depreciation and SBC expenses

(8.3)

(2.4)

(2.3)

(2.4)

- Other cash costs

(1.9)

(0.5)

(1.0)

(1.2)

Total cost of revenue(31.1)(4.9)(16.1)(19.2)

Gross profit

10.5

7.3

4.5

2.9

Self-Mining

Cloud Hash Rate

General Hosting

Membership Hosting

21.6

18.0

27.8

23.9

- Electricity cost in operating mining machines

(9.5)

(4.1)

(18.6)(17.1)- Depreciation and SBC expenses

(6.2)

(5.2)

(3.7)

(3.1)

- Other cash costs

(1.9)

(1.6)

(2.4)

(2.3)

Total cost of revenue(17.6)(10.9)(24.7)(22.5)

Gross profit

4.0

7.1

3.1

1.4

Revenue
Cost of revenue

US $ in millions
Business lines
RevenueThree Months Ended Jun 30, 2023

Cost of revenue

Revenue

Total revenue was US$99.2 million vs. US$93.8 million.
Self-mining revenue was US$41.6 million vs. US$21.6 million, primarily due to the increase in self-mining hash rate to 7.3 EH/s
from 3.8 EH/s from the Company’s 100MW Gedu mining datacenter in Bhutan that entered into operations in the second half of2023 and the higher average Bitcoin price.
Cloud Hash Rate revenue was US$12.2 million vs. US$18.0 million. The decline was due to changes in the amount of active
Cloud Hash Rate orders and the decrease in electricity subscription due to lower margins for customers caused by the April 2024
Halving.
General Hosting revenue was US$20.6 million vs. US$27.8 million. The decline was primarily due to the decrease of average
hosting capacity caused by the temporary shutdown of hosting mining rigs after the April 2024 Halving.
Membership Hosting revenue was US$22.1 million vs. US$23.9 million, slightly down year-over-year.
Cost of Revenue

Cost of revenue was US$74.8 million vs US$77.7 million. The decrease was primarily driven by lower mining machine
depreciation from becoming fully depreciated and the true up differences of tax and surcharges.
Gross Profit and Margin

Gross profit was US$24.4 million vs. US$16.2 million.
Gross margin was 24.6% vs. 17.2%.
Operating Expenses

The sum of the operating expenses below was US$26.1 million vs. US$24.8 million.
Selling expenses were US$2.2 million vs. US$1.9 million, primarily due to increased staff and compensation.
General and administrative expenses were US$15.9 million vs. US$16.5 million, about flat year-over-year.
Research and development expenses were US$8.0 million vs. US$6.4 million, primarily due increased R&D personnel andmaterial costs related to the development of SEALMINER chips.
Other Net LossIn Q2, we recorded US$15.5 million other net loss primarily due to the non-cash expense of the fair value change for Tether
warrants.
Net Loss

Net loss was US$17.7 million vs. US$40.4 million.
Adjusted Profit (Non-IFRS)

Adjusted profit was US$4.6 million vs. US$2.3 millio
Adjusted EBITDA (Non-IFRS)

Adjusted EBITDA was US$24.9 million vs. US$18.7 million. The increase was primarily due to the year-over-year revenue growthand higher gross profit margins as described above.

Cash FlowsNet cash used for operating activities was US$74.1 million;
Net cash generated from investing activities was US$54.3 million including the proceeds from disposal of cryptocurrencies of
US$79.3 million received from the principal businesses.
Net cash generated from financing activities was US$105.1 million.

Capital Expenditures

Capital expenditures for PPE and mining machines were US$17.5 million vs. US$38.1 million. The decrease was driven byapproximately US$20 million reduction in purchases of third party mining machines as the Company is focused on scaling
operations with its own SEALMINERS going forward.

Liquidity

As of June 30, 2024, the Company held US$203.9 million in cash and cash equivalents, US$24.9 million in cryptocurrencies andUS$37.8 million in debt.

Further information regarding the Company’s second quarter 2024 financial and operations results can be found on the SEC’s website https://sec.gov and theCompany’s Investor Relations website https://ir.bitdeer.com.
About Bitdeer Technologies Group
Bitdeer is a world-leading technology company for blockchain and high-performance computing. Bitdeer is committed to providing comprehensive computing

solutions for its customers. The Company handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter
design and construction, equipment management and daily operations. The Company also offers advanced cloud capabilities to customers with high demand
for artificial intelligence. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, please visit
https://ir.bitdeer.com/ or follow Bitdeer on X @BitdeerOfficial and LinkedIn @ Bitdeer Group.
Investors and others should note that Bitdeer may announce material information using its website and/or on its accounts on social media platforms, including
X, formerly known as Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages investors and others to review the information it posts on the social
media and other communication channels listed on its website.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts,
may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “look forward
to,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar
expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may
differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section
entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in Bitdeer’s
subsequent filings with the U.S. Securities and Exchange Commission. Any forward- looking statements contained in this press release speak only as of thedate hereof. Bitdeer specifically disclaims any obligation to update any forward- looking statement, whether due to new information, future events, or otherwise.
Readers should not rely upon the information on this page as current or accurate after its publication date.
BITDEER GROUP UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(US $ in thousands)

As of Jun 30,

As of Dec 31,

2024

2023

ASSETSCash and cash equivalents
Cryptocurrencies
Trade receivables
Amounts due from a related party
Prepayments and other assets
Financial assets at fair value through profit or loss
Restricted cash
Mining machines
Right-of-use assets
Property, plant and equipment
Investment properties
Intangible assets
Goodwill
Deferred tax assets

203,882
24,916
19,324
6,248
126,077
41,7399,144
55,12667,440196,749
32,11826,975
14,451
3,526

144,729
15,371
17,277
187
97,43337,775
9,538
63,47758,626
154,860
34,346
4,777
991

TOTAL ASSETS

827,715

639,387

LIABILITIES
Trade payables
Other payables and accruals
Amounts due to a related party
Income tax payables
Derivative liabilities
Deferred revenue
Deferred revenue from a related party
Borrowings
Lease liabilities
Deferred tax liabilities

36,16633,5703,380
6,604
25,336
87,104
32,77737,82879,362
6,189

32,48432,151
33
3,367
144,337
22,61870,211
1,620

TOTAL LIABILITIES

348,316

306,821

NET ASSETS

479,399

332,566

EQUITY
Share capital
Treasury shares
Accumulated deficit
Reserves*(66,990)546,389*(2,604)(49,853)
385,023

TOTAL EQUITY

479,399

332,566* Amount less than US$1,000

BITDEER GROUP UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Three months ended Jun 30,
2024
2023

(US $ in thousands)

Six months ended Jun 30,
2024
2023

Revenue[1]Cost of revenue
Gross profit
Selling expenses
General and administrative expenses
Research and development expenses
Listing fee
Other operating income / (expenses)
Other net gain / (loss)
Loss from operations
Finance income / (expenses)
Loss before taxation
Income tax benefit / (expenses)

99,229(74,824)

93,816(77,659)

218,735(160,199)

166,403(136,754)

24,405(2,173)(15,852)(8,048)
1,431(15,467)

16,157(1,879)(16,467)(6,433)(33,151)
(995)
1,468

58,536(3,863)(30,821)(29,212)
3,177(13,020)

29,649(4,315)(32,471)(12,727)(33,151)
(100)
1,608

(15,704)(44)(41,300)(895)(15,203)
107(51,507)(1,127)(15,748)(1,995)(42,195)
1,835(15,096)(2,041)(52,634)
2,807

Loss for the periods(17,743)(40,360)(17,137)(49,827)

Loss for the periods
Other comprehensive income for the periods
Item that may be reclassified to profit or loss
- Exchange differences on translation of financial statements(17,743)(40,360)(17,137)(49,827)

14

21

46

9

Other comprehensive income for the periods, net of tax

14

21

46

9

(17,729)(40,339)(17,091)(49,818)(0.14)(0.36)(0.14)(0.45)

126,530

110,916

120,686

109,805

Other comprehensive loss

Total comprehensive loss for the periods
Loss per share (Basic and diluted)
Weighted average number of shares outstanding (thousands) (Basicand diluted)[1] Included approximately US$9.1 million and US$13.9 million generated from hosting service provided to a related party for the three months and six months
ended June 30, 2024.

BITDEER GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended
Jun 30,Six months ended
Jun 30,(US $ in thousands)

2024

2023

2024

2023

Cash used in operating activities:
Interest paid on leases
Interest paid on convertible debt
Interest received
Income tax paid

(68,507)(1,024)(465)
1,722(5,850)(66,875)
(655)
(607)
2,096
(80)

(201,374)(1,676)(930)
3,535(5,850)(158,602)(1,299)(1,207)
4,074(95)

Net cash used in operating activities(74,124)(66,121)(206,295)(157,129)

Cash flows from investing activities
Purchase of property, plant and equipment, investment properties and intangible assets
Purchase of mining machines
Purchase of financial assets at fair value through profit or loss
Proceeds from disposal of financial assets at fair value through profit or loss
Lending to a third party
Repayment of lending from a third party
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of cryptocurrencies
Cash paid for a business combination, net of cash acquired(17,333)(178)(1,532)
244
79,344(17,168)(20,939)
(400)
606
25
69,719(46,948)(1,738)(2,524)
244
169,724(24,609)(62,510)(1,400)31,111(62)
29
125,240(6,277)-(6,277)-

Net cash generated from investing activities

54,26831,843

112,481

67,799Cash flows from financing activities
Capital element of lease rentals paid

(1,236)(1,392)(2,574)(2,632)

Net payment related to Business Combination
Proceeds from issuance of shares for exercise of share rewards

567(7,506)-604(7,651)-

Proceeds from issuance of ordinary shares and warrants, net of transaction costs1
Payment for the future issuance cost

106,064-

155,692

-

(297)

-

(297)

-

Net cash generated from / (used in) financing activities

105,098(8,898)

153,425(10,283)

Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effect of movements in exchange rates on cash and cash equivalents held

85,242
118,461
179(43,176)
173,897(518)

59,611
144,729(458)(99,613)231,362(1,546)

Cash and cash equivalents at the end of the period

203,882

130,203203,882

130,203

1Net proceeds from issuance of ordinary shares and warrants in Q2 24 includes the effect from the utilization of payment for future issuance cost made in Q1 24.

Use of Non-IFRS Financial Measures
In evaluating the Company’s business, the Company considers and uses non-IFRS measures, adjusted EBITDA and adjusted profit/(loss), as supplemental
measures to review and assess its operating performance. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation andamortization, further adjusted to exclude the changes in fair value of derivative liabilities, listing fee and share-based payment expenses under IFRS 2, anddefines adjusted profit/(loss) as profit/(loss) adjusted to exclude the changes in fair value of derivative liabilities, listing fee and share-based payment expenses
under IFRS 2.
The Company presents these non-IFRS financial measures because they are used by its management to evaluate its operating performance and formulate
business plans. The Company also believes that the use of these non-IFRS measures facilitate investors’ assessment of its operating performance. These
measures are not necessarily comparable to similarly titled measures used by other companies. As a result, investors should not consider these measures inisolation from, or as a substitute analysis for, the Company’s loss for the periods, as determined in accordance with IFRS. The Company compensates forthese limitations by reconciling these non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered whenevaluating its performance. The Company encourages investors to review its financial information in its entirety and not rely on a single financial measure.
The following table presents a reconciliation of loss for the relevant period to adjusted EBITDA and adjusted profit, for the three and six months ended June 30,2024 and 2023.
BITDEER GROUP NON-IFRS ADJUSTED EBITDA AND ADJUSTED PROFIT RECONCILIATION(US $ in thousands)
Adjusted EBITDA
Loss for the periods
Add：
Depreciation and amortization
Income tax (benefit) / expenses
Interest income, net
Listing fee
Change in fair value of derivative liabilities
Share-based payment expenses
Total of Adjusted EBITDA
Adjusted Profit
Loss for the periods
Add：
Listing fee
Change in fair value of derivative liabilities
Share-based payment expenses
Total of Adjusted Profit

For investor and media inquiries, please contact:
Investor Relations
Yujia Zhai
Orange Group
bitdeerir@orangegroupadvisors.com
Public Relations
Wachsman
Bee ShinThree months ended Jun 30,
2024
2023

Six months ended Jun 30,
2024
2023

(17,743)(40,360)(17,137)(49,827)

18,3041,995(9)
14,230
8,093

18,934(1,835)(741)
33,151
9,554

36,491
2,041(617)
14,23015,89636,223(2,807)(1,385)33,151
21,847

24,87018,70350,90437,202(17,743)(40,360)(17,137)(49,827)

14,2308,093

33,151
9,554

14,23015,89633,151
21,847

4,580

2,345

12,9895,171

bitdeer@wachsman.com