Bit Deer Releases Q1 Financial Report for FY 2025

A cryptocurrency mining company recently released its financial report for the first quarter of fiscal year 2025. The report shows that the company's revenue in the first quarter reached $70.10 million, a year-on-year decrease of 41.3%, with a slight quarter-on-quarter increase of 1.6%. Among them, the revenue from self-operated business was $37.20 million, a year-on-year decrease of 10.4%.

It is worth noting that the company's consolidated gross profit was negative $3.2 million, with a gross margin of -4.6%. This was mainly due to the dry season in Bhutan, which caused electricity prices to rise, leading the company to temporarily shut down local mining operations. However, as the second quarter enters the rainy season, electricity prices have fallen back to $0.042 per kilowatt-hour.

The company achieved sales of a new type of mining machine for the first time this quarter, with a revenue of $4.1 million. The adjusted EBITDA was a negative $56.1 million, compared to a positive $27.3 million in the same period of 2024. The net profit reached $410 million, mainly from the reversal of the fair value of convertible notes ($448.7 million) and certain cryptocurrency options ($58.4 million) accrued in the fourth quarter of 2024.

The company's prepaid accounts continue to increase, reaching $382 million, which has covered the funding needed for the maximum wafer volume. The new generation of mining machines has entered the shipping stage, and subsequent self-operated and sales strategies will be flexibly adjusted based on market competition. Another new type of mining machine has also completed the wafer production, and it is expected to officially be put into use and sold by the end of the third quarter or the fourth quarter of 2025.

In response to the U.S. tariff policy, the company will complete the construction of its North American assembly plant in the second quarter. Although costs have risen slightly, the impact is relatively small compared to the current tariffs in Southeast Asia. The Southeast Asian assembly plant will continue to meet the demands of mining operations in non-U.S. regions.

The company's global power infrastructure construction continues to grow rapidly, with the global available power capacity expected to approach 1.6GW by the end of the second quarter and 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 this level by the end of the year.

The new generation of mining machines only started being used in the self-operated mine in March, but the company's overall mining costs are still more than 20% lower than those of its peers. With the complete replacement of old mining machines, the cost advantage will become more apparent, and it is expected that from the second quarter onwards, monthly output will show exponential growth.

Recently, the price of Bitcoin has shown an upward trend, with the potential to break through the previous historical high of $109,000 per coin. Against the backdrop of pressure on the dollar, Bitcoin, as an alternative asset, is beginning to exhibit safe-haven characteristics similar to gold. 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 support the price of Bitcoin.

For the company, the first quarter of 2025 may be the worst period in the next two years, but it also marks the arrival of an operational turning point. In the coming quarters, the progress in mining machine R&D and the speed of self-operated mining farm expansion will become key points to observe.