Bitdeer, a Singapore-based Bitcoin mining company backed by Tether, has seen its stock price plummet 20% after announcing a loss of $532 million in the fourth quarter of 2024. The main reason is that the company has invested heavily in developing its own line of Bitcoin mining ASIC chips.

Bitdeer Stock Drops 20%, Hits 3-Month Low

Shares on the Nasdaq fell to about $11.50 on Tuesday morning in New York, their lowest level in three months, in reaction to the company's difficult fourth-quarter financial report.

Although Bitdeer's mining capacity exceeded 2.6 GW in Q4, the company still faces a major challenge in deploying its SEALMIER A1 custom miner, its first self-produced ASIC hardware.

Bitdeer Bets on Own ASIC Chips, Bears Rising Research Costs

To compete with #bitmain – the market-leading manufacturer of the Antminer series, Bitdeer has set its sights on becoming the world's most energy-efficient ASIC chip supplier.

In the fourth quarter, the company entered the final design phase for its second and third generation of Bitcoin mining chips. However, this also caused a sharp increase in research and development (R&D) expenses, reaching $23 million compared to $8.3 million in the same period last year.

Matt Kong, Bitdeer’s Chief Business Officer, stated that manufacturing its own ASIC chips helps the company build a “strong competitive edge” against its competitors. He emphasized:
"Owning and deploying our own mining chips is a key strategy that allows Bitdeer to control the entire supply chain and significantly improve our competitive advantage over the broader industry."

Losses From Convertible Securities And Contracts With Tether

In addition to the $532 million loss in the fourth quarter, Bitdeer also reported a $414 million loss due to fluctuations in the value of convertible bonds issued last year.

In addition, the company also suffered a $56 million loss related to its Tether warrants. According to an SEC filing in June 2024, #Tether owns 25% of Bitdeer and has the right to buy additional shares of the company at a fixed price at a specified time in the future.

From $26.99 Peak to $11.50 – Where Is Bitdeer Stock Going?

Despite recent struggles, Bitdeer shares are up 63% over the past year, hitting an all-time high of $26.99 in January 2025.

Notably, Bitdeer shares surged 83% in November 2024 after a surge following Donald Trump’s victory in the US presidential election. JPMorgan even called Bitdeer “one of the biggest beneficiaries” of the rally.

However, whether Bitdeer can maintain its growth remains a big question mark.