Bitdeer Technology Group (NASDAQ: BTDR) experienced a dramatic 20% decline in its stock price on Monday, following the announcement of a substantial net loss of $266.7 million for its third quarter. This figure represents a staggering 422% drop compared to the same period last year.
The company”s loss per share was reported at -$1.28, a notable increase from -$0.35 in Q3 2024, and significantly worse than the consensus estimate of -$0.22 from Zacks Investment Research.
Despite the financial setback, Bitdeer managed to nearly triple its revenue, reporting $169.7 million, up from $62 million in the prior year, surpassing Zacks” expectations. The stock closed at $17.64 per share, according to data from Yahoo Finance, effectively erasing the gains it had accumulated over the previous month. Year-to-date, the stock is down approximately 22.8%.
In comparison, competitors such as MARA Holdings and CleanSpark saw their stocks decline by 1.8% and 3.4%, respectively, while Riot Platforms experienced a slight increase of 1.8%. Over the past month, MARA has faced a 16.4% drop, whereas CleanSpark and Riot Platforms have lost 22% and 17.5%, respectively.
Amid these challenges, Bitdeer”s Chief Business Officer, Matt Kong, expressed optimism about the company”s direction, emphasizing its transition towards high-performance computing. “Q3 marked a quarter of strong execution and financial performance,” he stated, adding that the firm is intensifying its focus on artificial intelligence (AI) to capitalize on the growing global demand for computing resources.
Bitdeer is positioning itself within the crypto mining sector, which is increasingly looking for opportunities linked to AI. The company has also been adapting to the market landscape, where Bitcoin miners have faced numerous pressures over the last 18 months. This includes a reduction in rewards for validating blockchain transactions post-halving, alongside rising operational costs that have prompted many miners to explore alternative revenue streams.
In August, Bitdeer indicated plans to enhance its manufacturing capabilities within the U.S., focusing on the development of mining rigs. Most of the industry”s mining equipment is currently sourced from China. On Monday, the firm announced that mass production of its new Sealminer A3 machine has commenced, although the rollout of its energy-efficient mining chip, SEAL04, has encountered delays.
