Bitdeer (BTDR) Stock Drops 8% After Q4 Earnings Show Margin Decline

TLDR

• Bitdeer swung to Q4 profit of $70.5 million from a $531.9 million loss while revenue surged to $225 million from $69 million year-over-year
• The miner’s hashrate capacity reached 71 EH/s, exceeding MARA Holdings, as it mined 1,673 bitcoins versus 469 in Q4 2024
• Gross margin fell to 4.7% from 7.4% due to rising electricity and depreciation costs from rapid mining rig expansion
• Stock dropped over 8% to below $11 Thursday despite profitable quarter as Roth Capital lowered price target to $30 from $40
• Company sold roughly half its bitcoin treasury in early 2026, dropping holdings from 2,000 BTC to 1,040 BTC

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Bitdeer Technologies Group reported a dramatic Q4 turnaround with net profit of $70.5 million compared to a $531.9 million loss in the same period last year. Revenue nearly tripled to $225 million from $69 million as the company scaled its bitcoin mining operations.

The Singapore-based miner produced 1,673 bitcoins during the quarter, up from 469 a year earlier. Self-mining revenue climbed to $168.6 million from $41.5 million, driving most of the growth.

Bitdeer Technologies Group, BTDR

Total managed hashrate reached 71 exahashes per second by year’s end. That’s more than triple last year’s level. The company now operates 55.2 EH/s of self-mining capacity plus customer-hosted rigs, surpassing rival MARA Holdings on the managed hashrate metric.

Margin Pressure Weighs on Profitability

Gross margin compressed to 4.7% from 7.4% a year earlier. Electricity expenses and depreciation costs climbed as Bitdeer rapidly deployed new mining equipment. Operating expenses also rose with increased R&D spending on the company’s SEALMINER chip technology.

Bitdeer held just over 2,000 bitcoin at December’s end. BitcoinTreasuries data shows holdings have since fallen to roughly 1,040 BTC following sales in January and February. The company likely used proceeds to fund continued expansion.

The miner is diversifying beyond bitcoin. Management highlighted plans to provide data center capacity for artificial intelligence and high-performance computing clients. Bitdeer currently controls roughly 3 gigawatts of power capacity across operating and pipeline sites.

Stock Slides Despite Earnings Beat

Shares fell more than 8% Thursday, dropping below $11 after the earnings report. The decline marked a fresh year-to-date low. Roth Capital analyst Darren Aftahi cut his price target to $30 from $40 while keeping a Buy rating.

The analyst acknowledged Bitdeer’s strategic shift toward AI infrastructure. However, margin compression appears to have spooked investors despite the return to profitability.

AI Infrastructure Push Continues

Several sites are slated for partial conversion to AI workloads over the next two years. This mirrors a broader trend as miners seek revenue diversification. With 3 gigawatts of power capacity, Bitdeer has infrastructure to support both mining and AI operations.

The company continues developing its proprietary SEALMINER chips. These are designed to compete with standard mining hardware while potentially offering better efficiency.

Bitdeer now ranks among the largest publicly traded bitcoin miners by computing capacity. The rapid hashrate expansion through 2025 positioned the company ahead of established competitors on managed capacity metrics.

Roth Capital’s reduced price target reflects concerns about near-term margins despite the profitable quarter and aggressive capacity expansion.

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