Nevertheless, Bitdeer’s Q1 net income exceeded $400 million, primarily powered by gains on convertible notes and warrants given to stablecoin issuer Tether in 2024. This revenue plunge comes amidst Bitcoin miners’ expanding pursuits beyond Bitcoin mining and a shift towards supplying high-performance computing (HPC) for AI applications.

“As we expand self-mining and progress on our ASIC [mining hardware] roadmap, we are also forwarding plans for U.S.-based HPC and AI infrastructure,” stated Matt Kong, Bitdeer’s Chief Business Officer.

Despite these efforts, Bitcoin miners face challenges adapting post-Bitcoin network’s April 2024 halving event, which halved mining revenue. Bitdeer is countering dwindling mining revenue by selling its in-house, energy-efficient Bitcoin mining hardware. However, sales are yet to compensate for the mining income loss.

The company is augmenting self-mining activities, utilizing mining hardware to amass Bitcoin. Bitdeer anticipates its self-mining hashrate will reach 40 exahashes per second (EH/s) by the close of 2025, as revealed in its earnings release. Hashrate is an indicator of the computational power safeguarding the Bitcoin network.

“With our SEALMINER mining rigs swiftly coming off the production line and abundant global power capacity available, we expect to see swift growth in our self-mining hashrate,” Kong added.

As of March, Tether held a 21% stake in Bitdeer, according to US regulatory filings. Bitdeer is reportedly investing in its US expansion to hedge against potential trade wars escalation.

The post Bitdeer Experiences Over 40% Drop in Q1 Revenue Year-on-Year appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.