Bitdeer Technologies Group — FY2023 Form 20-F
Reporting period: Fiscal year ended December 31, 2023. This is an annual report, not a standalone fourth-quarter filing; the provided filing text does not give clear Q4-only financial results. Financial statements are prepared under IFRS as issued by the IASB. Unless noted otherwise, amounts are U.S. dollars.
Business context and financial performance
Bitdeer operates self-mining, hash-rate sharing and hosting businesses, supported by its Minerplus software platform. It completed its SPAC business combination and began Nasdaq trading as BTDR in April 2023.
| Metric | FY2023 | FY2022 | Change / context |
|---|---|---|---|
| Revenue | $368.6 million | $333.3 million | Up 10.6% |
| Gross profit / margin | $77.8 million / 21.1% | $83.3 million / 25.0% | Profit down 6.5%; margin contracted |
| Operating loss | $52.2 million | $60.6 million | Loss narrowed |
| Net loss | $56.7 million | $60.4 million | Loss narrowed; basic loss per share was $0.51 versus $0.56 |
| Adjusted EBITDA* | $100.3 million | $93.2 million | Up 7.6% |
| Adjusted profit* | $22.0 million | $30.3 million | Down 27.4% |
| Net cash used in operating activities | $271.8 million | $268.0 million | Cash outflow remained substantial |
| Cash and cash equivalents at year-end | $144.7 million | $231.4 million | Down $86.6 million |
Revenue mix: Self-mining revenue rose 79.1% to $111.7 million; General Hosting was $97.3 million, down 1.9%; Membership Hosting increased 206.7% to $79.9 million; and Cloud Hash Rate fell 44.1% to $67.9 million. Cloud Hosting declined to $3.2 million from $12.7 million. Bitcoin accounted for 98.8% of self-mining revenue.
Cash flow and liquidity: Investing activities generated $199.9 million, chiefly from $299.1 million of cryptocurrency disposals, offset partly by $63.3 million of property, plant and equipment and intangible-asset purchases and $63.0 million of mining-machine purchases. Financing activities used $13.5 million. The company reported $9.5 million of restricted cash and a $1.0 million on-demand fiat investment in unlisted debt instruments. Management stated liquidity sources were expected to cover working capital and capital expenditures for at least 18 months from the report date.
Debt and obligations: Borrowings were $22.6 million, comprising the remaining balance of an unsecured convertible note bearing 8% interest, amended to mature July 21, 2025. Lease liabilities were $70.2 million. Deferred revenue was $144.3 million, compared with $182.3 million in 2022.
*Adjusted EBITDA and adjusted profit are non-IFRS measures. Adjusted EBITDA excludes interest, taxes, depreciation and amortization, listing fee and share-based payment expenses; adjusted profit excludes the listing fee and share-based payment expenses.
Material changes and operating developments
- Revenue recovered from the 2022 decline but remained below FY2021’s $394.7 million. The filing attributes FY2023 growth mainly to higher self-mining revenue and the expansion of Membership Hosting.
- Self-mining revenue benefited from increased hash rate, operation of the Bhutan facility during the second half of 2023 and Bitcoin price appreciation in Q4. Average hash rate allocated to self-mining increased to approximately 5.1 EH/s from 2.4 EH/s.
- Cloud Hash Rate revenue declined as subscriptions and electricity revenue decreased, prior accelerator-mode revenue-sharing arrangements expired, and allocated hash rate eased to 1.6 EH/s from 1.8 EH/s.
- Cost of revenue rose 16.3% to $290.7 million. Electricity expense increased 29.5% to $180.6 million, while mining-machine depreciation decreased 12.4% to $25.7 million. Gross margin consequently fell to 21.1% from 25.0%.
- Cash and cash equivalents declined from $231.4 million to $144.7 million, primarily due to Bhutan facility construction and mining-fleet purchases, and deposits paid to electricity suppliers.
Outlook, risks and notable items
- Expansion: As of February 29, 2024, Bitdeer reported 895 MW of operating electricity capacity and a plan to reach approximately 1,970 MW, including 575 MW under construction and 500 MW contracted or negotiated but not yet under active construction. These are company plans, not assured outcomes.
- New initiatives: After year-end, the company reported successful testing of its SEAL01 Bitcoin-mining chip and planned SEALMINER A1 deployments. It also reported completing deployment and testing of an NVIDIA DGX SuperPOD H100 system in March 2024 to support AI computing services.
- Bitcoin and mining risks: Results are sensitive to Bitcoin prices, network hash rate and mining difficulty, and the 2024 halving. Electricity prices, availability and curtailment, equipment supply, facility construction and customer demand also affect returns.
- Capital and dilution: The company may sell up to $150 million of shares under its B. Riley committed equity facility at a 3% discount to the defined VWAP; it had sold 6,738,555 shares under that facility as of the report date. A separate at-the-market program of up to $250 million was entered into in March 2024; the filing says no shares had yet been sold under it as of the report date.
- Related-party custody: Substantially all cryptocurrency was held in custody by Matrixport Group, a related party associated with founder Jihan Wu. The company reported $15.4 million of cryptocurrency at year-end and disclosed that custody does not eliminate loss or counterparty risk. It said it had no outstanding crypto lending or wealth-management products and did not anticipate such activity in the foreseeable future.
- Governance and controls: Management concluded the previously identified material weakness in internal financial-reporting controls was remediated as of December 31, 2023. The auditor did not provide an internal-control attestation because Bitdeer qualified as an emerging growth company. The filing also notes a prior restatement of FY2021 revenue, cost-of-revenue and cash-flow presentations.
- Other notable items: FY2023 includes a $33.2 million listing fee related to the business combination and $45.5 million of share-based payment expense. The company reported no material legal or administrative proceedings and no dividends paid.
Important facts for investors to verify
- How operating cash use and reliance on cryptocurrency-disposal proceeds reconcile with management’s 18-month liquidity assessment, including the timing of planned construction and fleet spending.
- Whether revenue and margins in hosting and self-mining can sustain improvement, particularly after the Bitcoin halving and with rising network difficulty.
- Progress, financing and power availability for the 1,970 MW capacity plan, distinguishing operating capacity from construction and pipeline projects.
- The custody, access controls and related-party terms involving Matrixport Group, along with the valuation and liquidity of the $37.8 million portfolio of financial assets at fair value through profit or loss.
- Actual share issuance and dilution under the committed equity facility, the at-the-market program and incentive plans; also note the dual-class structure, under which Class V shares carry ten votes each and Jihan Wu controls most voting power.
- Whether the reported remediation of internal-control weaknesses is sustained in future periods and whether subsequent filings identify new control issues.