Bitdeer Technologies Group Q3 FY2024 earnings call

Haris Basit highlighted that Bitdeer's Q3 results were impacted by the 2024 halving, higher global network hash rate, lower hosting and cloud mining revenue, but partially offset by higher average self-mining hash rates and Bitcoin prices. The company is focused on a long-term strategy of developing ASIC technology, with significant strides in the SEALMINER ASIC roadmap. The SEALMINER A1 rigs powered by SEAL01 chip are in production, SEALMINER A2 rigs with SEAL02 chip are in mass production with plans for deployment. The AI cloud business in Singapore had high utilization, and expansion into Canada. Energy assets are being explored for HPC and AI data centers, with global infrastructure build-out progressing. Jeff LaBerge detailed the financial results, noting revenue, gross profit, operating expenses, and cash position.

Total revenue for Q3 2024 was $62 million. Self-mining revenue was $31.5 million, which was a 4.7% increase compared to the prior year, primarily due to an increase in average self-mining hashrate and higher Bitcoin prices. Cloud hash rate revenue was $7.1 million, down from $15.6 million the prior year due to long-term cloud hash rate contracts rolling off. General hosting revenue was $9.6 million versus $22.2 million prior year, and membership hosting revenue was $9.9 million versus $16 million prior year. The decrease in hosting revenue was due to converting hosting capacity to hydro-cooling and some hosting customers removing less efficient miners after the 2024 halving.

Bitdeer anticipates infrastructure CapEx to be in the range of approximately $250 million to $275 million between Q4 2024 and 2025 for global power and data center infrastructure. The company remains committed to commercializing SEALMINER ASICs, with plans to start delivering SEALMINER A2 to customers in Q1 2025. Taping out of the third generation chip with industry-leading efficiency is expected in Q2 2025, and fourth generation chip in the second half of 2025 targeting 5 joules per terahash.

Risks include supply chain impacts affecting infrastructure build-out, such as the delay in Rockdale, Texas hydrocooling conversion due to US dock workers' strike. Uncertainties in semiconductor capacity allocation from TSMC and Samsung, which could impact ASIC production timelines. Regulatory uncertainties in different jurisdictions and their potential impact on data center operations and ASIC market entry.

Q: Greg Lewis asked about the TLM engagement and how it positions Bitdeer to secure HPC partners.

A: Jihan Wu and Jeff LaBerge mentioned ongoing discussions with potential partners, focusing on partnership structure and financing.

Q: Brett Knoblauch inquired about CapEx and ASIC working capital dynamics.

A: Jeff LaBerge explained CapEx includes electrical infrastructure and build-out for sites, and Jihan Wu discussed working capital needs for ASIC production with TSMC.

Q: Kevin Cassidy asked about Tier 3 data centers and profitability comparison with mining.

A: Jeff LaBerge said diversification of revenue sources is considered, not just pure ROI.

Q: Darren Aftahi asked about ASIC business and site expertise.

A: Jihan Wu and Jeff LaBerge stated no significant impact from incoming administration and ongoing exploration of partnership models.

Q: Mike Colonnese asked about ASIC market share and hosting business transition.

A: Jihan Wu mentioned securing market share via technology and transparency, and Jeff LaBerge said majority of excess capacity will be for self-mining.

Q: John Todaro asked about HPC development partners and mining rig ASIC cycle.

A: Haris Basit and Jeff LaBerge discussed potential equity splits and Jihan Wu spoke about Bitcoin cycle impact on ASIC pricing.

Q: Nick Giles asked about TLM assessment of sites outside US and 18 exahash split.

A: Jeff LaBerge mentioned TLM not evaluating Norway sites yet and Jihan Wu discussed self-mining priority with some external sales.

Q: Brian Kinstlinger asked about SEALMINER A2 production and R&D expenses.

A: Jihan Wu spoke about production capabilities and ongoing R&D expenses.

Q: Mike Grondahl asked about HPC team size and ASIC customer orders.

A: Haris Basit and Jeff LaBerge mentioned small HPC team and early interest in SEALMINER A2.

Q: Bill Papanastasiou asked about sites outside US for AI HPC and capital allocation.

A: Jeff LaBerge and Haris Basit discussed Europe's potential and long-term capital allocation for mix of Bitcoin mining and HPC