Bitcoin Miner Bitdeer’s Stock Dives 30% On First Day Of Trading

Key Points:

• Bitcoin miner Bitdeer’s stock slumps 30% in trading debut.
• One of the largest miners in the world, Bitdeer listed on the Nasdaq earlier today and saw a lukewarm reception as shares lost almost 30% of their value.
• Bitdeer reported a loss of $62.4 million for 2022, compared to a profit of $82.6 million the year before, according to the prospectus filing.

Bitcoin miner Bitdeer listed today on the Nasdaq after several delays. The shares of the miner, under the ticker BTDR, lost almost 30% of their value during the initial trading hours and were trading around $6.81 at the time of publication.

However, it is important to note that Bitdeer is one of the largest miners in the world with six mining sites across Washington state, Texas, Tennessee and Norway, with a total energy capacity of 775 megawatts (MW) as of the end of 2022. This is about 200 MW less than what it had estimated in February 2022. Its hashrate or computing power at the end of January stood at a total of 16.2 exahash per second (EH/s), second only to bankrupt Core Scientific (CORZ) and higher than Riot Platforms (RIOT) and Marathon Digital Holdings (MARA).

The stock was halted shortly after market open several times for volatility, which created further uncertainty in investors. Other crypto mining stocks saw single-digit upticks in their share value at the same time frame, which could indicate that Bitdeer’s poor performance was not an industry-wide issue.

Bitdeer’s merger with a special-purpose acquisition vehicle (SPAC), called Blue Safari Group Acquisition Corp, was approved on Tuesday. The Singapore-based firm’s financial performance deteriorated in 2022, in part due to worsening market conditions. The firm reported revenues of $330.3 million and a loss of $62.4 million for 2022, compared with $394.7 million in revenue and a profit of $82.6 million the year before, according to the prospectus filing.

About one quarter of its computing power is used for self-mining, meaning it keeps the bitcoin rewards, whereas the rest is given out for cloud mining, meaning customers rent its machines and reap the rewards. Bitdeer was born out of the world’s largest rig manufacturer, Bitmain, which had a spat between the two co-founders. One of them left and took Bitdeer. Another cloud mining firm also affiliated with Bitmain, BitFuFu, is also in the process of going public via SPAC, but has delayed the listing.

Bitdeer’s performance on the Nasdaq was not ideal but the timing of its public listing may work in its favor. Market conditions have improved with bitcoin passing the $30,000 mark and mining equities in many cases outperforming the digital asset in percentage growth. In the future, the “market will begin to shift from not only focusing on operators with the biggest scale, but also operators with the best unit economics,” said investment bank Stifel Nicolaus’s analyst Bill Papanastasiou.

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Annie

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