Bit Deer Releases Q1 Report for FY 2025: Revenue Slightly Rebounds, Mining Rig Sales Officially Launched

A certain cryptocurrency mining company recently announced its financial report for the first quarter of the fiscal year 2025. The report shows that the company's revenue for the first quarter reached 70.1 million USD, a year-on-year decrease of 41.3%, but a slight quarter-on-quarter increase of 1.6%. Among them, the revenue from self-operated business was 37.2 million USD, a year-on-year decrease of 10.4%.

It is worth noting that the company's consolidated gross profit for the first quarter was negative $3.2 million, with a gross margin of -4.6%. This was primarily due to the increase in electricity prices caused by the dry season in Bhutan, which led the company to temporarily close its local Mining Rig. However, as the second quarter enters the wet season, electricity prices have fallen back to $0.042 per kilowatt-hour.

The company's sales of new Mining Rigs reached 4.1 million USD this quarter, marking the official launch of its Mining Rig sales business. However, the adjusted EBITDA was negative 56.1 million USD, a significant decline compared to the positive 27.3 million USD in the same period of 2024.

The company's net profit reached $410 million, mainly due to the fair value reversal of convertible notes ($448.7 million) and certain cryptocurrency options ($58.4 million) recognized in the fourth quarter of 2024.

Business Development and Future Outlook

1. Increase in Prepaid Accounts: The company's prepaid accounts for the first quarter of 2025 further increased to $382 million, up from $310 million in the fourth quarter of 2024. This amount is sufficient to cover the funding required for the maximum available wafer volume.

2. Progress on New Mining Rigs: The new generation of mining rigs has entered the shipping phase, and the subsequent self-operated and sales rhythm will depend on market competition. If competition is fierce, the company will prioritize lighting up self-operated mining sites. Another new type of mining rig has also completed the tape-out in the first quarter and is currently in the testing phase, expected to be officially deployed in self-operated mining sites and start sales by the end of the third quarter or the fourth quarter of 2025.

3. Responding to tariff challenges: To cope with the U.S. tariff policy, the company will complete the construction of the North American assembly plant in the second quarter. Subsequently, sales in North America will come from localized assembly, and although costs will rise by nearly 10%, the impact is relatively small compared to the current tariffs in Southeast Asia. The Southeast Asian assembly plant will meet the demand for Mining Rigs in non-U.S. regions.

4. Global Power Layout: The company's global power infrastructure construction continues to grow rapidly. It is expected that by the end of the second quarter, the global available power capacity will be close to 1.6GW and is expected to reach 1.8GW by the end of this year.

5. Expansion of Self-operated Mining Farms: As of April, the hash rate of the company's self-operated mining farms has reached 12.5 Eh/s, and it is expected to rise to 40 Eh/s in October, with the potential to exceed 40 Eh/s by the end of 2025. The latest model of Mining Rig was only put into use in the self-operated mining farm in March, but the company's overall mining costs are still at least 20% lower than its peers. As old Mining Rigs are fully replaced, the cost advantage will become more apparent, and it is expected that from the second quarter onwards, monthly output will show exponential growth.

Market Outlook

The price of Bitcoin has recently regained upward momentum, with the potential to break through the previous historical high of $109,000 per coin. Under the influence of U.S. trade policies, the dollar is under pressure, and Bitcoin, as an alternative asset, is beginning to exhibit safe-haven characteristics similar to gold.

The Federal Reserve has recently adopted an "average inflation" policy, which may lead to an interest rate cut as early as June, with the expectation for a total of three rate cuts this year (up from one previously). These factors will provide positive support for Bitcoin prices.

After experiencing a transitional period in operations in the fourth quarter of last year and the first quarter of this year, the company is about to enter a critical period. In the coming quarters, the progress of Mining Rig research and development and the expansion speed of self-operated mining sites will become important observation indicators. The operating conditions in the first quarter of 2025 may be the worst period in the next two years, but it also signifies that the operational turning point is about to arrive.