Financial Performance Overview
Shares of Bitdeer Technologies, a Singapore-based Bitcoin miner, experienced a notable decline of nearly 20% on Monday. This downturn followed the company's announcement of a $266.7 million net loss for the third quarter of 2025. This figure represents a substantial increase compared to the $50.1 million net loss recorded during the same period in the previous year.
The primary driver behind the escalated losses was attributed to non-cash charges incurred from the revaluation of the company's convertible debt. Despite this accounting-related loss, Bitdeer showcased robust operational performance across its various business segments, which encompass traditional mining and burgeoning artificial intelligence services.
Revenue and Operational Highlights
Bitdeer's revenue saw a significant surge, climbing to $169.7 million, marking a 174% increase from the prior year. This growth was predominantly fueled by the expansion of its self-mining operations. Furthermore, the company successfully doubled its Bitcoin production within the quarter, mining 1,109 Bitcoin, a considerable increase from its output in the corresponding period of 2024.
The company also reported positive strides in its operating performance. Adjusted EBITDA rose to $43 million, a marked improvement from a $7.9 million loss in the same period of 2024. These operational enhancements underscore Bitdeer's capacity to generate positive cash flow from its core business activities, even when faced with accounting losses.
Diversification into AI and High-Performance Computing
Bitdeer reported its initial revenue stream from high-performance and AI cloud services, generating $1.8 million in the third quarter. This development signifies the company's strategic move to reallocate a portion of its computing power towards artificial intelligence applications. This diversification strategy aligns with the broader trend observed among other major Bitcoin mining companies that are actively seeking alternative revenue sources.
Matt Kong, chief business officer at Bitdeer, expressed optimism about the company's positioning, stating that Bitdeer is "uniquely positioned to capitalize" on the burgeoning AI market and the escalating demand for computing power. He projected that dedicating 200 megawatts of power capacity to AI cloud services could potentially yield an annualized revenue run-rate exceeding $2 billion by the close of 2026.
Infrastructure Expansion and Industry Trends
As of the end of the quarter, Bitdeer held 2,029 Bitcoin in reserve, a substantial increase from the 258 Bitcoin held a year prior, representing an almost eight-fold growth in its Bitcoin holdings. The company's infrastructure also expanded significantly, with the management of 241,000 mining rigs, compared to 165,000 rigs managed at the same time last year.
The trend of Bitcoin mining companies diversifying into AI and high-performance computing is becoming increasingly prevalent. These companies are repurposing their power capacity to cater to the rapidly expanding demand in these sectors. For instance, in August, MARA Holdings announced a $168 million agreement to acquire a 64% stake in Exaion, a subsidiary of France's EDF, with the objective of expanding into low-carbon AI infrastructure.
Similarly, Core Scientific entered into a multi-year, $100 million contract with the GPU cloud firm CoreWeave in March 2024. This agreement involves hosting high-performance computing (HPC) workloads at its Texas data center, further demonstrating the industry's pivot towards supporting AI and HPC applications.