Bitdeer's stock fell 20% to $8.70 on Monday, hitting a four-month low after the bitcoin miner reported a wider-than-expected second-quarter loss. Revenue came in at $228.8 million, just shy of the $231.16 million analysts had penciled in, and the company's net loss ballooned to $92.3 million from $62.9 million a year earlier.
The cost side of the ledger
The company swung to a gross loss of $8.5 million, compared with a gross profit of $12.0 million in the same quarter last year. Cost of revenue rose to $237.3 million, driven by electricity and depreciation charges. Loss per share was $0.37, wider than the $0.32 analysts expected.
Revenue still climbed 47% year over year, but the jump wasn't enough to cover the higher costs. The wider loss is the headline, and the market didn't like it.
Where the growth is
Not everything went sideways. Self-mining revenue nearly tripled to $168.4 million from $59.3 million, and Bitcoin mined jumped to 2,694 from 565 a year earlier. AI Cloud revenue hit $14 million, up from $1.3 million. Adjusted EBITDA improved to $31.1 million from $4.6 million.
CFO Michael G. Potter pointed to the company's integrated vertical stack in the earnings release, a nod to the self-mining and AI Cloud push. But the market focused on the bottom line.
The stock's wild ride
Bitdeer shares had a strong second quarter, gaining 83%. Since July, though, they've dropped 43.7%. Monday's slide puts the stock at its lowest point in four months.
The next earnings update is due in November. Until then, the market will have to weigh the growth story against the widening losses.
