Shares of Bitdeer Technologies Group (NASDAQ: BTDR) are tumbling 5.25% in pre-market trading on Thursday following the release of the company's first-quarter 2025 financial results. Despite beating revenue expectations, the Bitcoin mining technology firm reported a wider-than-expected loss and a significant decline in key financial metrics.

For the quarter ended March 31, 2025, Bitdeer reported total revenue of $70.1 million, surpassing the FactSet consensus estimate of $67.7 million. However, this figure represents a substantial decrease from $119.5 million in the same quarter last year. The company's adjusted earnings per share came in at a loss of $0.39, missing analysts' expectations of a $0.31 loss per share.

Bitdeer's financial performance was impacted by several factors, including the effects of the April 2024 Bitcoin halving and increased global network hashrate. The company's gross profit turned negative, reporting a loss of $3.2 million compared to a profit of $34.1 million in Q1 2024. Additionally, Adjusted EBITDA fell to negative $56.1 million from positive $27.32 million in the prior-year period, reflecting the challenging market conditions faced by Bitcoin mining companies. Despite these headwinds, Bitdeer reported a significant increase in net income to $409.5 million, primarily due to non-cash fair value changes of derivative liabilities.