Bitdeer Technologies Group

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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 A2 mining machine chips and A3 mining machine chips. Among them, the current operational parameters of the A2 mining machine are historically leading in all mining machines available and operational in 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 globally, 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, constructing and operating mining farms in multiple locations worldwide. As of the end of November 2024, it has completed the deployment of a total of 895MW of power plants in the United States, Norway, and Bhutan, with an additional 1645MW project under construction, of which 1415MW is expected to be fully completed in the second half of 2025. The company has also established a dedicated department to acquire more power plant projects, with expectations to add 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 hash power service): It operates the "BitDeer" service platform, providing cloud hash power services to users in 200 countries and regions worldwide. Users do not need to purchase mining machines or build mining farms themselves; they can participate in Bitcoin mining by purchasing hash power through the platform. This model lowers the threshold for ordinary investors to participate in cryptocurrency mining, attracting a large number of users interested in cryptocurrency mining but lacking professional resources and technology.

Mining machine hosting: Relying on the "Mining++" service platform, it provides mining machine hosting services to customers. Customers entrust their own mining machines to Bit Deer, and the company utilizes its global mining farm resources to provide a series of services including site, power supply, and mining machine operation and maintenance, charging corresponding hosting fees.

Expanding AI hash power services: Starting in November 2024, the company began deploying Nvidia H200 chips in TIER3 data centers for smart cloud services, entering the AI hash power construction field. 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, producing, and selling self-developed mining machines, such as the A2 mining machine, revenue is generated. With the continuous launch of new mining machines that are competitive in the market, many miners are attracted to purchase them, making this one of the company's important sources of profit.

Self-operated mining income: The company leverages its self-operated mining farms located 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 in the market for higher profits. According to the 1EH/s model assumption (with a mining machine depreciation period of 4 years, a power plant depreciation period of 15 years, and other costs accounting for 5%), the shutdown price for the self-operated mining farm of Bit Deer is $35,000 per Bitcoin. When the price of Bitcoin exceeds $150,000, the pre-tax profit slope of the self-operated mining farm 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 farm will approach 80%.

Cloud computing power service revenue: Users purchase cloud computing power services from Bit Deer, and the company charges fees based on the power package price, usage duration, etc. As the number of registered cloud computing power users globally increases (the business model mentions user quantity), the revenue from cloud computing power services continues to grow, becoming a stable source of profit.

Mining machine hosting revenue: 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, the company provides AI computing power cloud calling services to customers and charges service fees. Although it is currently in the early stages of business expansion, it is expected to become a new growth point for profit 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 and cloud computing services.
Self-operated mining: It is an important way for the company to acquire Bitcoin assets and achieve profitability. During the Bitcoin price increase cycle, it can significantly boost the company's profits and enhance 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 mining industry's dynamics, providing experience and data support for optimizing other businesses.
Cloud computing services: It lowers the threshold for investors to participate in Bitcoin mining, attracting a large number of users, expanding the company's user base and market share, and enhancing 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 utilizing the company's existing mining resources to provide value-added services for customers, increasing revenue sources, while further consolidating cooperation with customers and enhancing customer loyalty.
AI computing services: In line with the trend of technological development, it explores new business areas and profit channels, helping 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 multiple impacts on BTC:

Hashrate Contribution: The company's continuously expanding mining hashrate enhances the total hashrate of the Bitcoin network, improving network security and stability. If the company continues to expand its self-operated mining farm scale, it is expected to increase its power reserve to 2.3GW by mid-2025. If fully equipped with A3 mining machines, the self-operated hashrate will approach 220EH/s. Assuming linear growth of the total network hashrate, the proportion of the total network hashrate may reach around 20% by the end of 2025, which will have a significant impact on the overall hashrate landscape.

Market Supply: By producing Bitcoin through self-operated mining and providing cloud hashrate services to help customers generate Bitcoin, the company increases the supply of Bitcoin in the market, affecting the supply and demand relationship of the Bitcoin market. The number of Bitcoins produced by the company is influenced by various factors such as Bitcoin prices, hashrate scale, and electricity costs, which in turn indirectly affects the price trends 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 development in the entire Bitcoin mining industry, thereby impacting the Bitcoin ecosystem on a macro level.