Bitdeer Technologies Group

Self-developed chips and mining machine sales: Bit Deer places great importance on its self-developed chip capabilities, viewing them as key to maintaining core competitiveness in the mining machine production field. In the past six months, the company successfully completed a trial production of the A2 mining machine chip and the A3 mining machine chip. Among them, the A2 mining machine's current operating parameters are historically leading among all mining machines available and in operation on the market. The yet-to-be-released A3 mining machine, based on known parameters, is expected to become the largest single-hash power mining machine in the world, with excellent energy consumption performance. The company generates revenue through the sale of self-developed mining machines, such as the announcement in 2024 of the first batch of 30,000 A2 mining machines for external sale. Self-operated mining: The company is actively laying out its self-operated mining business, establishing and operating mining sites in multiple locations around the world. As of the end of November 2024, a total of 895MW of power plants have been deployed in the United States, Norway, and Bhutan, with an additional 1645MW of projects under construction, of which 1415MW is expected to be fully completed in the second half of 2025. The company has also set up a special department dedicated to acquiring more power plant projects, with the expectation of adding over 1GW of power plants by 2026. The company utilizes the deployed mining machines and power resources for Bitcoin mining, and the produced Bitcoin can be sold in the market for profit. Hash Power Sharing (Cloud Computing Services): It owns the "BitDeer" service platform, providing cloud computing services to users in 200 countries and regions worldwide. Users do not need to purchase mining machines or build mining farms; they can simply buy hash power through the platform to participate in Bitcoin mining. This model lowers the threshold for ordinary investors to participate in cryptocurrency mining, attracting a large number of users who are interested in cryptocurrency mining but lack professional resources and technology. Mining Machine Hosting: Relying on the "Mining++" service platform, we provide mining machine hosting services for customers. Customers entrust their own mining machines to Bit Deer, and the company utilizes its global mining resources to offer a series of services including site, power supply, and mining machine operation and maintenance, while charging corresponding hosting fees. Expand AI computing power services: Starting in November 2024, deploy Nvidia H200 chips in TIER3 data centers of smart cloud services, entering the field of AI computing power construction. The company plans to deploy Nvidia's high-end chips with at least 200MW of power in the short term and provide cloud calling services for clients such as MEGA 7, emulating the COREWEAVE model.

Mining machine sales revenue: By researching, developing, producing, and selling self-developed mining machines, such as the A2 mining machine, revenue is generated from sales. As new mining machines are continuously launched and their performance is competitive in the market, they have attracted many miners to purchase, becoming one of the important sources of profit for the company. Self-operated mining revenue: The company leverages its self-operated mining sites globally, using its own mining machines and power resources to mine Bitcoin. The price fluctuations of Bitcoin significantly impact this portion of profit; when the price of Bitcoin rises, the mined Bitcoin can be sold on the market for higher profits. According to the 1EH/s model assumption (mining machine depreciation period of 4 years, power plant depreciation period of 15 years, and other costs accounting for 5%), the shutdown price for the Bit Deer self-operated mining site is $35,000 per Bitcoin. When the price of Bitcoin exceeds $150,000, the pre-tax profit slope of the self-operated mining site surpasses the rate of Bitcoin's increase. If the price of Bitcoin reaches $200,000, the pre-tax profit margin of the self-operated mining site will approach 80%. Cloud computing service revenue: Users purchase the cloud computing services of Bit Deer, and the company charges users based on the pricing of the computing power packages and the duration of use. As the number of registered cloud computing users worldwide increases (the business model mentions the user count), the revenue from cloud computing services continues to grow, becoming a stable source of profit. Mining machine hosting income: Fees are charged to customers based on the number of hosted mining machines, the duration of hosting, and the level of services provided. AI computing power service revenue (emerging): With the development of AI computing power service business, providing customers with AI computing power cloud calling services and charging service fees, although it is currently in the early stages of business expansion, it is expected to become a new profit growth point in the future.

Mining machine sales: On one hand, it brings direct sales revenue to the company; on the other hand, by selling high-performance mining machines, it enhances the company's visibility and influence in the industry, attracting more customers to pay attention to the company's other businesses, such as self-operated mining, cloud computing services, etc. Self-operated mining: It is an important way for the company to acquire Bitcoin assets and achieve profitability. During the rising cycle of Bitcoin prices, it can significantly enhance the company's profits and strengthen its voice and competitiveness in the cryptocurrency market. At the same time, large-scale self-operated mining helps the company gain a deeper understanding of the dynamics of the mining industry, providing experience and data support for optimizing other businesses. Cloud computing power services: Lower the threshold for investors to participate in Bitcoin mining, attract a large number of users, expand the company's user base and market share, and enhance brand influence. Continuous revenue growth provides the company with stable cash flow for business expansion, technology research and development, and global layout. Mining machine hosting: Fully utilize the company's existing mining site resources to provide value-added services for customers, increase revenue sources, while further consolidating cooperation with customers and enhancing customer loyalty. AI computing power services: In line with the trend of technological development, expanding new business areas and profit channels helps the company achieve diversified development, reduce dependence on a single cryptocurrency mining business, and enhance the company's overall risk resistance capability.

The business of BitDeer mainly revolves around Bitcoin (BTC), having a multifaceted impact on BTC: Hash Power Contribution: The company's continuously expanding mining hash power has increased the total hash power of the Bitcoin network, enhancing the network's security and stability. If the company continues to expand its self-operated mining site scale, it is expected that by mid-2025, the power station reserves will be increased to 2.3GW. If fully equipped with A3 mining machines, the self-operated hash power will approach 220EH/s. Based on the linear growth projection of the total network hash power, the proportion of the total network hash power may reach around 20% by the end of 2025, which will have a significant impact on the overall hash power landscape. Market Supply: By self-mining to produce Bitcoin and providing cloud computing services to help customers generate Bitcoin, the supply of Bitcoin in the market has increased, affecting the supply and demand relationship of Bitcoin. The amount of Bitcoin produced by the company is influenced by various factors such as Bitcoin price, computing power scale, and electricity costs, which in turn indirectly affects the price trend of the Bitcoin market. Industry Demonstration: As a well-known enterprise in the industry, its initiatives in technology research and development (such as chip development) and business expansion (such as entering AI computing power) may inspire other companies in the industry to follow suit, promoting technological upgrades and diversified business development across the entire Bitcoin mining industry, thereby impacting the Bitcoin ecosystem on a macro level.