Bitcoin Mining Stocks Bitdeer and Cipher Plunge After 2024 Earnings Report, Profits Hit by Struggles

Bitdeer Technologies and Cipher Mining saw their stocks plummet after releasing their 2024 earnings reports, highlighting continued struggles to stay profitable. The fourth Bitcoin block reward halving in April 2024 has cut into miners’ revenues, forcing them to look for ways to diversify their operations.

Dropping Revenue, Shrinking Profits

Bitdeer Technologies posted 2024 revenue of just $69 million, down 40% from 2023. The company’s gross profit also fell sharply from $27 million to $5.1 million. Bitdeer's crypto balance is $77.5 million at the end of 2024.

Although Bitdeer's total hash rate increased slightly to 21.6 EH/s, the amount of Bitcoin mined during the year dropped sharply from 1,299 BTC in 2023 to 469 BTC in 2024. Bitdeer's chief business officer Matt Kong said that the company has focused on developing its proprietary ASIC technology, which has limited hash rate growth and affected short-term financial performance, but has brought great progress in the company's long-term strategy.

Cipher Mining: Revenue Increases But Costs Exceed

Cipher Mining also saw its Bitcoin mining revenue increase to $151 million in 2024, but its cost of revenue and depreciation also increased. This resulted in a full-year adjusted loss of $106.6 million for the company, up from a loss of $46 million in 2023. Cipher increased its self-mining hash rate to about 13.5 EH/s after upgrading its equipment fleet at the Odessa facility.

Cipher Mining CEO Tyler Page said that with a planned 2.8 GW deployment and a track record of successful projects, the company is confident in its ability to become a leading data center developer for high-performance computing (HPC) infrastructure while maintaining a strong position in the Bitcoin mining space.

Shares Plunge

Bitdeer shares fell 28% to $9.38 per share following the earnings release, while Cipher Mining shares fell 20% to $3.96 per share. Bitdeer and Cipher have market capitalizations of $2.5 billion and $1.9 billion, respectively.

The stock market was also affected by President Donald Trump's announcement of further tariffs on imports from Canada and Mexico, causing risk aversion among investors, especially for cryptocurrency mining companies.