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After experiencing several delays, Bitcoin mining company Bitdeer finally made its debut on Nasdaq today. However, the response to the listing was tepid, as the company's shares, trading under the ticker BTDR, plummeted almost 30% in value, currently hovering around $6.81 at the time of writing.
Shortly after the market opened, trading of Bitdeer's stock was repeatedly halted due to its high volatility. Meanwhile, other cryptocurrency mining stocks experienced modest increases in their share prices, with some seeing single-digit upticks during the same time period.
On Tuesday, the proposed merger between Bitdeer and a special-purpose acquisition vehicle (SPAC) called Blue Safari Group Acquisition Corp received approval.
According to a March prospectus filed with the U.S. Securities and Exchange Commission, Bitdeer is among the world's largest mining companies. The Singapore-based firm operates six mining sites across Washington state, Texas, Tennessee, and Norway, with a combined energy capacity of 775 megawatts (MW) as of the end of 2022, slightly lower than its estimate in February 2022. Its hashrate, or computing power, was recorded at 16.2 exahash per second (EH/s) at the end of January, surpassing that of Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) but trailing behind bankrupt Core Scientific (CORZ).
Approximately one-fourth of Bitdeer's energy capacity is allocated for self-mining, which allows the company to keep the bitcoin rewards. The remaining energy capacity is utilized for cloud mining, where customers rent the company's machines and receive the rewards.
Bitdeer was created when one of the co-founders of Bitmain, the world's largest rig manufacturer, departed from the company following a dispute between the two. Bitdeer is also associated with another cloud mining firm, BitFuFu, which is affiliated with Bitmain and is currently preparing to go public through a SPAC merger. However, BitFuFu has delayed its listing.
Like other bitcoin miners, Bitdeer's financial performance was negatively impacted in 2022 by the worsening market conditions. The company's revenue for the year was reported to be $330.3 million, with a loss of $62.4 million, as per the prospectus filing. This represents a decline from the previous year, during which the company generated $394.7 million in revenue and a profit of $82.6 million.
Bitdeer is going public at a more opportune time than last year, given the improved market conditions, with bitcoin surpassing the $30,000 threshold and mining stocks, in many instances, outperforming the digital asset in percentage growth. Looking ahead, investment bank Stifel Nicolaus's analyst Bill Papanastasiou stated that the market will shift from solely concentrating on operators with the largest scale to operators with the best unit economics.
Source Coindesk
