Bitdeer continues to make strategic investments even though its fourth quarter of 2024 revenues decreased significantly and its net loss grew substantially.
As a Nasdaq-listed Singapore-based company Bitdeer recently bought 100 Bitcoin through two deals and established a new share repurchase initiative. The company maintains enduring support for developing its finances through ongoing market difficulties.
Bitcoin purchases and share buyback plans
Bitdeer acquired 100 BTC this week, adding to its existing holdings. On February 25, the company bought 50 BTC at $90,280 per coin, the same day it released its Q4 earnings report. Two days later, on February 27, it purchased another 50 BTC at $81,475 each, bringing its total investment to $8.59 million. Before these purchases, the company held 911 BTC.
In addition to increasing its Bitcoin reserves, Bitdeer completed a $9 million share buyback and launched a new $20 million share repurchase program. The initiative will run until February 28, 2026, and will be funded with cash. Despite ongoing financial pressures, these moves indicate confidence in the company’s future.
Revenue decline following Bitcoin halving
Bitdeer’s financial performance suffered from general obstacles in the Bitcoin mining industry, which were intensified by the expected impacts of the April 2024 Bitcoin halving. The organization registered $69 million in Q4 revenue, but this figure was significantly lower than the $114.8 million reported in the equivalent quarter of 2023. The company suffered a significant net loss increase from $5 million to $531.9 million during this period.
Bitdeer achieved exceptional revenue expansion since 2024 when their first quarter earnings grew from $72.6 million to $119.5 million. The second quarter revenue for Bitdeer declined to $99.2 million while both subsequent quarters showed continued revenue reductions as well. The company pointed to both the halving phenomenon and the increasing global hash rates together with reduced hosting revenue as primary reasons for its difficulties.
Expansion into ASIC chip development
Bitdeer continues very substantial research and development commitments while facing financial adversity. The company builds application-specific integrated circuit (ASIC) chips for implementation in its long-term strategy. Bitdeer purchased DesiweMiner in June 2019 by giving away $140 million worth of stock while incorporating the members of DesiweMiner into its ASIC unit.
SEAL01 represents one of several chips that the company developed and production started in Q4 2024. SEAL02 will hit the market during Q3 2024 after SEAL03 launches in Q4 2024 and SEAL04 comes out in Q2 2025. Mass distribution begins by the end of that year. The customer reservations for Bitdeer’s SEAL A2 model surpassed 1.38 million units and the delivery dates will start from March.
Meanwhile, CEO Jihan Wu plans to sell up to 4 million ordinary shares between March and June 15, 2025, under a plan finalized in December. The company has emphasized that the sale complies with U.S. securities regulations regarding insider trading.