U.S-listed bitcoin mining operation Bitdeer booked a gross profit of $10.8 million on revenues of $15.6 million for its cloud mining segment in the latest quarter, the company said in an earnings release on Monday.
The Singapore-headquartered mining firm has provided a cost-of-revenue breakdown for each of its proprietary mining, cloud mining, and hosting segments for the first time, shedding more light on how mining companies diversify their proprietary hashrate to navigate the challenges of the bear market.
Bitdeer reported a total revenue of $87.3 million across all business segments, reflecting a 7% decline on a quarter-over-quarter basis. While the majority of the revenue stemmed from its proprietary mining business, the cloud mining segment had the highest gross margin, reaching almost 70%.
Bitdeer allocates its 8.7 EH/s in proprietary hashrate between the proprietary mining and cloud mining segments.
The diversification into cloud mining has effectively improved the gross margin of its overall proprietary hashrate utilization to 51.2% in Q3, much other than its major North American competitors such as Core Scientific and Marathon, whose proprietary hashrate gross margin in Q3 was about 40%.
Riot Platforms, Bitdeer’s main Texas rival across the street in Rockdale, also deployed a strategy in diversifying its proprietary hashrate by shutting them down for power curtailment credits.
As reported previously reported, this strategy contributed to Riot’s 120% in proprietary hashrate gross margin in Q3 on its book because there were more than enough credits to offset Riot’s power bills in bitcoin mining.