Bit Deer Q1 2025 Financial Performance Analysis and Outlook

A cryptocurrency mining company recently announced its financial report for the first quarter of the fiscal year 2025. The data shows that the company's revenue in the first quarter was $70.1 million, a year-on-year decrease of 41.3%, with a slight quarter-on-quarter increase of 1.6%. Among this, the revenue from self-operated businesses was $37.2 million, a year-on-year decrease of 10.4%.

It is worth noting that the company's comprehensive gross profit in the first quarter was negative 3.2 million dollars, with a gross margin of -4.6%. This was mainly due to the power price increase caused by the dry season in Bhutan, which led the company to temporarily close local mines. However, as the second quarter enters the wet season, the electricity price has fallen back to a level of 0.042 dollars/kwh.

The company has made breakthroughs in mining machine sales, achieving sales of 4.1 million USD. This marks the official launch of the company's mining machine sales business. However, the adjusted EBITDA is -56.1 million USD, a significant decline compared to the positive 27.3 million USD in the same period of 2024.

Nevertheless, the company's net profit reached $410 million, mainly due to the reversal of the fair value of previously reserved convertible notes ($448.7 million) and Tether options ($58.4 million).

From an operational perspective, the company's prepaid accounts have further increased to $382 million, up from $310 million in the fourth quarter of 2024. This amount is sufficient to cover the current maximum wafer volume required. The new generation mining machine Seal02 has begun shipping, while the Seal03 mining machine has completed wafer production and is currently in the testing phase, expected to be officially put into self-operated mining fields and sales by the end of the third quarter or the fourth quarter of 2025.

In response to changes in U.S. tariff policies, the company is building an assembly plant in North America, which is expected to be completed in the second quarter. This will allow products sold in North America to be sourced from localized assembly. Although costs will rise slightly, the impact is relatively small compared to the current tariffs in Southeast Asia. Meanwhile, the Southeast Asian assembly plant will continue to meet the demand from mining sites outside the U.S.

The company's global power infrastructure construction continues to advance rapidly. It is expected that by the end of the second quarter, the global available power capacity will approach 1.6GW, and is expected to reach 1.8GW by the end of the year.

As of April, the hash rate of the company's self-operated mining farms has reached 12.5Eh/s, and it is expected to rise to 40Eh/s in October, with hopes of exceeding 40Eh/s by the end of the year. Although the latest Seal01 and Seal02 mining machines only began to go online in the self-operated mining farms in March, the company's overall mining costs are still at least 20% lower than those of its peers. With the full replacement of old mining machines, cost advantages will further manifest, and it is expected that from the second quarter onwards, monthly output will show an exponential growth trend.

Looking ahead, the price of Bitcoin has shown an upward trend recently, with the potential to break through the previous historical high of $109,000 per coin. Against the backdrop of a pressured dollar, Bitcoin's characteristics as an alternative asset and its safe-haven properties are beginning to stand out. Furthermore, the Federal Reserve's recent adoption of an "average inflation" policy may lead to an interest rate cut as early as June, with the expectation of three rate cuts throughout the year, all of which will provide support for the price of Bitcoin.

For the company, after experiencing the operational transition period in the fourth quarter of last year and the first quarter of this year, a critical moment is approaching. In the coming quarters, the speed of mining machine R&D and the expansion speed of self-operated mining farms will become important observation points. The operational situation in the first quarter of 2025 may be the most sluggish period in the next two years, but it also marks the arrival of an operational turning point.