TL;DR: Bitdeer posted a record third quarter of $320.7 million, up 89% year-over-year, while reporting a net loss of $125.5 million. Its AI-cloud valuation is now close to $2.9 billion, reflecting strong demand but not revenue or fundraising.
Bitdeer has provided one of the clearest examples of a Bitcoin mining business trying to transform itself into a provider of public computing infrastructure. Its latest quarter brought in record revenue and a robust cloud application pipeline. It was also not very profitable under accounting standards.
In his Nov. 10 third quarter earnings announcementthe company reported $320.7 million in revenue, an 89% increase from the previous year. Adjusted EBITDA increased to $69.6 million, while GAAP net loss increased to $125.5 million.
These measurements vary and should be read carefully. Management highlighted changes in the fair value of digital-asset-related debt, including a $54.6 million unfunded liability, as a factor in the accounting result.
We don’t have $2.9 billion in the bank
The trend that will get the most attention is Bitdeer’s AI-cloud offering which is close to $2.9 billion. Revenue represents contracted or expected future services under the company’s reporting definitions, rather than actual revenue or recognized monthly revenue.
The amount that will be converted into sales depends on the offer of contracts, customer demand, the capacity that comes online and the conditions attached to the obligations. Investors should seek information on timing and conditions that may delay or reduce the amount.
However, a large backlog can indicate customer demand for specific infrastructure. That’s especially important in an industry where building or consolidating data centers involves huge upfront costs.
Bitcoin mining has been very important for years
Bitdeer reported an output of 3,855 Bitcoin during the quarter and said it held 47 Bitcoin at quarter-end. Those figures help distinguish the operating exits from the Bitcoin that remains on the balance sheet. Output will increase even though the firm will sell most of the cash to finance labor, equipment and other projects.
The company also reported approximately $213.7 million in cash, cash equivalents and bonds. The remaining income should be considered alongside capital expenditure, financing costs and planned expansion and should not be treated as an unweighted profit from AI.
NewsBTC has reported on Riot’s decision to sell Bitcoin as it pursues major AI infrastructure contracts. Miners pursue different goals, but both represent a phase that balances near-term financial needs with investments that may generate future income.
Our coverage of Soluna’s infrastructure agreement with Bitdeer in Texas adds a clear example of why access to energy and commercial networks will continue as competition for computing power grows.
What a loss that cannot be ignored
Adjusted EBITDA may help investors evaluate operating performance before certain costs and valuation changes. It’s not the same as free or passive income. A company can show a positive metric that has been adjusted and will continue to suffer, financial costs and heavy investment requirements.
That’s why the $125.5 million net loss is right next to the $320.7 million headline. Both are true, and neither tells the full picture.
The next test is performance
Bitdeer’s next reporting period should show when the AI-cloud backlog is turning into delivery services, how those services are contributing to margins and how much money they’re spending. Improving mining efficiency and energy costs will also be important.
New products point to strong revenue and a meaningful new business line. They have yet to show that the move to AI has solved the financial crisis that Bitcoin mining has faced.
Written by The Storybook, edited by Samuel Rae.
