Bit小鹿 2025 Fiscal Year Q1 Performance Analysis and Outlook

A cryptocurrency mining company recently announced its financial report for the first quarter of fiscal year 2025. The company's revenue in the first quarter reached $70.1 million, a year-on-year decrease of 41.3%, but a slight increase of 1.6% compared to the previous quarter. Among them, the revenue from self-operated business was $37.2 million, a year-on-year decline of 10.4%. The overall gross profit was -$3.2 million, with a gross profit margin of -4.6%, mainly affected by the increase in electricity prices during Bhutan's dry season, leading the company to temporarily close its local mines. However, as the second quarter enters the wet season, electricity prices have fallen back to $0.042 per kilowatt-hour.

It is worth noting that the company’s Seal series mining machines achieved sales of $4.1 million, marking the official launch of its mining machine sales business. The adjusted EBITDA was -$56.1 million, compared to a positive $27.3 million in the same period last year. The net profit was $410 million, mainly due to the reversal of fair value of previously accrued convertible notes and options.

From a financial perspective, the company's prepayments increased to $382 million in the first quarter, fully covering the funds required for the maximum wafer production. The Seal02 mining machines have begun to ship, and the future pace of self-operation and sales will depend on market competition. If competition intensifies, the company will prioritize the deployment of self-operated mining sites. The Seal03 mining machines have also completed wafer production and are expected to be put into self-operated mining sites and start sales in the third and fourth quarters of this year.

In response to the U.S. tariff policy, the company will complete the construction of its North American assembly plant in the second quarter. After that, North American sales will adopt localized assembly, which will result in a slight increase in costs, but the impact of tariffs will be smaller compared to Southeast Asia. The Southeast Asian assembly plant will meet the demand from other regions.

In terms of infrastructure, the company's global available power capacity is expected to reach nearly 1.6GW by the end of the second quarter, with the potential to reach 1.8GW by the end of the year. As of April, the self-operated mining farm's hashrate has reached 12.5Eh/s, and it is expected to rise to 40Eh/s by October, with a strong possibility of exceeding this level by the end of the year. The latest Seal01 and Seal02 mining machines were only put into operation in March, yet the company's overall mining costs remain at least 20% lower than its peers. With the comprehensive upgrade of old equipment, the cost advantage will be further highlighted, and monthly output will show exponential growth starting from the second quarter.

Looking ahead, the price of Bitcoin has shown an upward trend recently, with the potential to break through the previous historical high of $109,000 per coin. Influenced by the pressure on the dollar's performance, Bitcoin's status as an alternative asset and its hedging properties are becoming increasingly prominent. The Federal Reserve's recent adoption of an "average inflation" policy may lead to an early interest rate cut in June, with the expectation of three rate cuts throughout the year, all of which will support the price of Bitcoin.

For the company, after experiencing operational adjustments in the fourth quarter of last year and the first quarter of this year, the key in the coming quarters will focus on the speed of mining machine research and development and the progress of self-operated mining site deployment. The first quarter of 2025 may become a low point in the operational situation over the next two years, after which a turning point is expected, still making it a high-quality choice among North American Bitcoin mining stocks.