Bitdeer Technologies Group Q4 FY2024 earnings call

• Vertical integration strategy: Successfully acquired a 19-acre site in Alberta for a 101 MW gas-fired power plant and 99 MW data center. Estimated capital expenditure for the power plant is ~$90M and data center ~$30M. - ASIC roadmap: SEALMINER A1 mass production on schedule, A2 mass production at TSMC with 7 exahash allocated for external sale (oversubscribed 6x), A3 in development with SEAL03 chip targeting 10 joules per terahash efficiency. - Energy infrastructure: Over 2.6 GW of total power capacity, with ~1 GW to be newly energized in 2025. Some sites suitable for HPC and AI data centers.

For Q4 2024, total revenue was $69 million. Self-mining revenue was $41.5 million (down 11.5% due to April 2024 halving and higher global network hashrate, partially offset by increased average self-mining hashrate and higher Bitcoin prices). Cloud hashrate revenue was $2.3 million (down due to contract roll-offs). General hosting revenue was $8.5 million, Membership hosting revenue was $12.4 million, both down due to contract expirations. Total gross profit for the quarter was $5.1 million, gross margin 7.4%. For full-year 2024, revenue was $349.8 million, gross profit was $66.4 million, and adjusted EBITDA was $39.4 million.

• Expect self-mining hashrate to reach approximately 40 exahash by Q4 2025, depending on manufacturing schedule. - 2025 capital expenditures expected to be in the range of $340 million to $370 million, fully-funded by existing balance sheet. - Utilizing ATM shelf registration of $1 billion to enhance balance sheet flexibility and secure wafer allocations from TSMC.

• Potential impact of U.S.-China trade tensions on ASIC supply, though Bitdeer hasn't experienced direct issues yet. - Stock price fluctuations causing significant non-cash derivative losses on warrants and convertible notes.

Q: Media reports of U.S.-based miners facing delays in ASICs from competitors. Thoughts and impact on SEALMINER demand?

A: Haris Basit noted they haven't experienced direct delays, Jihan Wu mentioned issues being addressed by lobbying efforts.

Q: How to think about manufacturing capacity for A2 and A3 rigs?

A: Jihan Wu stated capacity to increase, TSMC is a strong partner but specific allocations not pre-announced.

Q: Revenue recognition in ASIC sales?

A: Haris Basit said revenue typically recognized upon delivery of A6, down payments held on balance sheet until delivery.

Q: CapEx allocation for sites and HPC AI?

A: Jeff LaBerge said CapEx includes infrastructure for Bitcoin mining at various sites, Clarington and Masilon sites in development with targets for second-half of 2025.

Q: Strategic thinking on full verticalization and self-mining vs selling rigs?

A: Haris Basit said existing sites will continue with Bitcoin mining, preference for self-mining until capacity fills, then more emphasis on sales.