Behind the historic high of stock prices, Bit Deer’s three new layouts

Author: Leek, Foresight News

Apart from MicroStrategy, there is another blockchain stock worth paying attention to recently.

On December 10, the U.S. listed company Bitdeer (Ticker: BTDR) closed at $20.6, briefly surpassing $22 during the trading session, setting a historical high price.

In May, the stock price of Bitdeer had fallen to around $5, more than a 50% drop compared to its listing price. With the arrival of the cryptocurrency bull market, its stock price has rebounded significantly, with an increase of up to 300% from November to now. Cryptocurrency-related stocks are relatively niche, and Bitdeer's performance can be described as outstanding.

According to the latest financial report released by Bitdeer in August, the company's revenue for the second quarter of 2024 reached $99.2 million, a year-on-year increase of 5.8%; the gross profit for Q2 was $24.4 million, but it did not turn a profit, with the net loss narrowing to $17.7 million, and revenue from cloud computing power business decreased by 32.2% year-on-year. As of June 30, 2024, Bitdeer held cash and cash equivalents of $203.9 million.

It is noteworthy that, as a publicly listed company related to Bitcoin mining, a significant event for the industry where Bitdeer operates is the new round of Bitcoin halving in April 2024, which will change the mining reward to 3.125 BTC per block.

Bitdeer was founded in 2021 by Wu Jihan, co-founder of Bitmain, when it was spun off, focusing on cryptocurrency mining farms and cloud mining, with its headquarters in Singapore. In 2023, it went public on NASDAQ through a SPAC, with an opening price of around $10.

Behind the stock price performance, Bitdeer's three major layouts in recent years are worth noting:

Entering the Mining Machine Market

Since the beginning of this year, Bitdeer has been making significant efforts in the research and development of mining machine products. In March, it launched the SEALMINER A1 model, and in October, it introduced the second-generation A2 series models.

The SEALMINER A2 series includes the air-cooled A2 and the water-cooled A2 Hyd, both using the self-developed SEA L02 chip. The air-cooled version is suitable for well-ventilated mining farms, while the water-cooled version focuses on better heat dissipation and noise control, suitable for high-density mining farms or noise-sensitive environments.

In terms of product parameters, the theoretical energy efficiency of the SEALMINER A2 is 16.5 J/TH, with a hash rate of 226 TH/S; the SEALMINER A2 Hyd also has an energy efficiency of 16.5 J/TH, but its hash rate reaches 446 TH/S.

Compared to mainstream market brands, its various metrics are at the first-tier level, and in actual machine testing videos, both models performed better than the theoretical data.

From the product roadmap, Bitdeer plans to complete the iteration of four generations of products within five quarters, with the energy efficiency target of the SEAL chip reduced from 18.1 J/TH to 5 J/TH, which is quite aggressive and also faces challenges in production capacity, market competition, and user feedback. Currently, its official website shows that the number of reservations for SEALMINER has reached 1.38 million units.

Tether Becomes Its Major Shareholder

In June of this year, Bitdeer announced a private financing of up to $150 million, selling $100 million worth of stock to the stablecoin issuer Tether, and granting Tether an additional purchase warrant for $50 million within 12 months. According to relevant information, Bitdeer has 118 million shares outstanding, and this private placement to Tether involved 18,587,360 shares of Class A common stock, accounting for 15% of its total shares, making Tether the largest shareholder of Bitdeer. Tether's CEO Paolo Ardoino stated that Tether is pleased to partner with Bitdeer, believing that Bitdeer is one of the strongest vertically integrated operators in the Bitcoin mining industry.

Collaborating with the Kingdom of Bhutan to Operate Mining Farms

As early as May 2023, Bitdeer announced a partnership with the commercial agency of the government of Bhutan, Druk Holding & Investments (DHI), to develop environmentally sustainable, zero-carbon digital asset mining operations in the country.

The two parties plan to initiate their partnership by establishing a closed-end fund, estimated to reach up to $500 million. In July 2023, the Gedu mining data center in Bhutan was completed, which, upon operation, increased the company's total power capacity by 100 megawatts and supported the operation of 30,000 mining machines, providing Bitdeer with a proprietary hash rate of 3.3 EH/s.

Currently, the government of the Kingdom of Bhutan holds approximately 11,790 BTC, valued at $1.16 billion.