Crypto mining firm Bitdeer has reported a wider loss for the fourth quarter of 2024. According to the firm’s official announcement, in comparison to the $5 million loss in the same period last year, Bitdeer Technologies Group announced a $531.9 million loss for the fourth quarter of 2024.
Additionally, compared to $114.8 million in the fourth quarter of 2023, total revenue for the fourth quarter of 2024 was $69 million.
The slump in revenue comes at a time when crypto miners have suffered globally, making many change their fields to AI.
Bitdeer Q4 Loss: What Is The Reason Behind It?
According to the firm’s official release, strategic investments in creating proprietary application-specific integrated circuit technology (ASIC) are to blame for the drop in revenue and the rise in net loss. But this expenditure momentarily also restrained the expansion of hashrate.
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Crypto Miners Across Globe Face Difficulty in Operations
Bitdeer’s rise in quarterly losses comes at a time when global cryptocurrency miners are having a difficult time maintaining high revenue levels.
The declining profitability of mining operations, which is mostly caused by the decline in the value of cryptocurrencies like Bitcoin and Ethereum, is one of the main causes.
Miners earn less money for doing the same amount of work when cryptocurrency prices decline, which makes it more difficult to pay for overhead expenses like gear upkeep and electricity.
Furthermore, the difficulty of mining rises as more miners join the network, decreasing the chances of successful mining and further diminishing profits.$476.3 million in cash and cash equivalents, despite these difficulties.
The continuous shift in networks like Ethereum from proof-of-work to proof-of-stake, which removed mining incentives, is another significant problem. Miners are also being impacted by regulatory scrutiny in different nations, where their activities are being impacted by more stringent laws and increased taxes.
Bitdeer Eyes Hashrate Expansion
Bitdeer intends to deploy its SEALMINER A1s and 28 exahashes per second of SEALMINER A2s this year in order to reach a self-mining hashrate of roughly 40 exahashes per second by Q4 of 2025
Matt Kong, Chief Business Officer at Bitdeer stated “In 2025, for our self-mining operation, we plan to energize all of our mass production SEALMINER A1s and 28 EH/s of SEALMINER A2s on top of our existing 8.7 EH/s of self-mining hashrate for the time being. This will bring Bitdeer’s total self-mining hashrate to approximately 40 EH/s by Q4 2025.”
Bitdeer’s plan to vertically integrate and improve its competitive standing in the blockchain and high-performance computing sectors includes this expansion.
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