Shares of Singapore-based Bitcoin miner Bitdeer Technologies experienced a sharp decline on Monday, plummeting nearly 20% after the company released its third-quarter 2025 financial results. The stock reacted negatively to a reported net loss of $266.7 million, a significant increase compared to the $50.1 million loss recorded during the same period last year.

The primary driver behind this substantial loss was attributed to non-cash losses stemming from the revaluation of Bitdeer's convertible debt. Despite the concerning net loss, the company showcased significant revenue growth. Revenue climbed to $169.7 million, marking a 174% increase year-over-year. This surge in revenue was fueled by the expansion of Bitdeer's self-mining operations.

Beyond revenue, Bitdeer also highlighted improvements in its operating performance. The company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to $43 million, a considerable turnaround from the $7.9 million loss reported in the third quarter of 2024. Bitcoin production also saw a substantial increase, with Bitdeer mining 1,109 BTC during the quarter, effectively doubling its output compared to the previous year.

In a strategic move to diversify its revenue streams, Bitdeer reported its first earnings from high-performance and AI cloud services, generating $1.8 million in Q3. This development reflects the company's efforts to allocate part of its computing power towards the rapidly growing artificial intelligence sector. Matt Kong, Bitdeer's chief business officer, expressed optimism about the company's position to capitalize on the increasing demand for computing power driven by AI. Kong suggested that allocating 200 MW of power capacity to AI cloud services could potentially generate an annualized revenue run-rate exceeding $2 billion by the end of 2026.

As of the end of the quarter, Bitdeer held 2,029 BTC, a notable increase from the 258 BTC held a year earlier. The company also expanded its mining infrastructure, managing 241,000 mining rigs, compared to 165,000 in the same period of the previous year.

Bitdeer is part of a growing trend among Bitcoin mining companies exploring opportunities in the AI and high-performance computing (HPC) sectors. These companies are increasingly repurposing their power capacity to cater to the escalating demand for computing power.