Shares of Bitdeer Technologies Group (NASDAQ: BTDR) plummeted 5.15% in pre-market trading on Monday following the release of its second-quarter financial results. Despite reporting a significant increase in revenue, the Bitcoin mining company's widening net loss and increased costs weighed heavily on investor sentiment.

Bitdeer reported total revenue of $155.6 million for Q2 2025, a substantial 56.8% increase year-over-year. However, the company's net loss widened dramatically to $147.7 million, compared to a net loss of $17.7 million in the same period last year. This stark contrast between revenue growth and profitability appears to be the primary driver behind the stock's decline.

The company attributed the increased loss primarily to non-cash fair value changes of derivative liabilities, including a $75.4 million loss on fair value changes for convertible notes and a $15.8 million loss on fair value changes for Tether warrants. Additionally, Bitdeer faced higher costs and operating expenses, with total operating expenses rising to $42.3 million from $26.1 million in the previous year. Research and development expenses, in particular, saw a significant increase of 155.7% year-over-year to $20.6 million.

While Bitdeer's management highlighted positive developments, such as the growth in self-mining operations and external sales of SEALMINER A2s, investors seem to be focusing on the company's profitability challenges. The market reaction suggests concerns about Bitdeer's ability to translate its revenue growth into bottom-line improvements in the near term.