Bitdeer Technologies Group Q2 2026 Earnings Report

Bitdeer Technologies Group EPS Results

• Actual EPS: -$0.37
• Consensus EPS: -$0.36
• Beat/Miss: Missed by -$0.01
• One Year Ago EPS: -$0.76

Bitdeer Technologies Group Revenue Results

• Actual Revenue: $228.78 million
• Expected Revenue: $228.67 million
• Beat/Miss: Beat by +$112.00 thousand
• YoY Revenue Growth: +47.00%

Bitdeer Technologies Group Announcement Details

• Quarter: Q2 2026
• Date: 8/10/2026
• Time: Before Market Opens
• Conference Call Date: Monday, August 10, 2026
• Conference Call Time: 8:00AM ET

Bitdeer Technologies Group (NASDAQ:BTDR) Inc. (NASDAQ:BTDR) is a global digital asset mining and computing services provider focused on delivering secure and efficient hashrate solutions to institutional and retail customers. The company leverages its proprietary mining platform to offer hosted mining, hashrate sales and management services, enabling clients to access large-scale mining operations without direct investment in hardware or infrastructure.

Bitdeer’s core offerings include mining hosting services, whereby the firm installs, operates and maintains specialized mining equipment on behalf of customers, and hashrate-as-a-service products that provide fixed-capacity mining power with transparent pricing structures. Through its cloud-based dashboard, clients can monitor performance metrics, manage mining capacity and optimize energy usage in real time.

The company operates data centers and mining facilities in North America and Northern Europe, regions known for reliable grid connections and competitive energy costs. Bitdeer has established strategic partnerships with local power suppliers and renewable energy providers to support its commitment to sustainable operations and to mitigate environmental impact associated with digital asset mining.

Founded in 2018, Bitdeer went public on the Nasdaq exchange in 2021, reflecting growing institutional interest in blockchain infrastructure. Co-founded by industry veterans with backgrounds in chip design and data center operations, the company continues to expand its global footprint while investing in innovative cooling technologies and management tools to drive efficiency and scalability.

Bitdeer Technologies Group Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Tydal colocation agreement establishes a new AI infrastructure pillar, with Volta contracted for 121 IT megawatts and approximately $4.7 billion in base-term revenue over 16 years. A potential eight-year renewal could raise total contract value to about $8 billion, though the tenant has a termination right after year 10.
• Positive Sentiment: Bitdeer reported strong operating growth, including 73 EH/s of self-mining capacity, 2,694 Bitcoin produced in the quarter, and AI Cloud annual recurring revenue of approximately $76 million, up 77% sequentially with 95% GPU utilization.
• Neutral Sentiment: Management expects roughly $500 million of remaining Tydal capital expenditure and plans to fund it through project-level debt backed by contracted cash flows. The two delivery phases target December 31, 2026 and March 31, 2027, but execution and commissioning remain key risks.
• Positive Sentiment: Second-quarter revenue rose 47% year over year to approximately $228.8 million, while adjusted EBITDA increased 575% to $31.1 million; gross loss improved sequentially by $30.5 million as power costs declined and fleet efficiency improved.
• Negative Sentiment: Bitdeer ended the quarter with a $101.7 million operating loss and used $158.5 million in operating cash, while its $457 million ATM equity raise increased liquidity but also introduced dilution risk. The company also increased full-year crypto-mining infrastructure CapEx guidance to $200 million-$280 million.

Presentation

[Operator]

Good day. Thank you for standing by. Welcome to Bitdeer's second quarter 2026 earnings conference call. At this time, all participants on a listen only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. Please be advised that today's conference is being recorded.

[Operator]

I would now like to turn the conference over to your first speaker today, Tesh Dahya, Head of Investor Relations. Please go ahead.

[Tesh Dahya, Head of Investor Relations at Bitdeer]

Thank you, operator, and good morning, everyone. Welcome to Bitdeer Technologies Group's second quarter 2026 earnings conference call. Joining me today are Jihan Wu, founder, chairman, and chief executive officer, Haris Basit, chief strategy officer, and Michael Potter, chief financial officer. Today's call will begin with Haris providing a review of our recently announced Tydal, Norway colocation lease agreement, followed by Michael with a review of our business segments and second quarter financial results.

[Tesh Dahya, Head of Investor Relations at Bitdeer]

Before management begins their formal remarks, I would like to remind everyone that during today's call, we may make certain forward-looking statements. These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially. For a more complete discussion of forward-looking statements and the risks and uncertainties related to Bitdeer's business and industry, please refer to the company's filings with the U.S. Securities and Exchange Commission.

[Tesh Dahya, Head of Investor Relations at Bitdeer]

I also want to note that we will be discussing certain non-GAAP financial measures and operating metrics today. A reconciliation of these measures to the most directly comparable GAAP measures is included in our earnings release issued earlier today. These non-GAAP measures should not be considered in isolation from or as a substitute for the most directly comparable measures prepared in accordance with GAAP.

[Tesh Dahya, Head of Investor Relations at Bitdeer]

As a reminder, changes to the fair value of our digital assets are reflected in GAAP net income and may introduce non-cash volatility into our reported results. With that, I will now turn the call over to Haris.

[Haris Basit, Chief Strategy Officer at Bitdeer]

Thank you, Tesh, and good morning, everyone. This is our first earnings call since we announced the execution of our $4.7 billion colocation lease at Tydal, Norway, and I would like to begin by putting that agreement in context. Over the past several years, we have worked to build a power infrastructure portfolio that we believe is well-positioned to support both our Bitcoin mining operations and our expansion into AI infrastructure. Tydal represents an important step in converting that portfolio into long-duration contracted revenue, and it establishes AI infrastructure colocation as an additional pillar of our business.

[Haris Basit, Chief Strategy Officer at Bitdeer]

Alongside our AI Cloud, Bitcoin mining, and ASIC development and manufacturing operations. We are pleased with the terms of this agreement and with the caliber of Volta as our counterparty. We view Tydal as an important proof point for this strategy. We intend to pursue additional opportunities of this kind as they arise. Agreements of this scale and complexity reflect the work of our team over the past several years. I want to thank everyone involved for their efforts in reaching this milestone.

[Haris Basit, Chief Strategy Officer at Bitdeer]

With that, let me walk through the terms of the Tydal transaction in more detail. On August fourth, we announced that our subsidiary, Tydal Data Center AS, has executed a 16-year colocation lease and services agreement with Volta at our Tydal campus in Norway. Under the agreement, we are delivering 121 IT MW supported by approximately 133 gross megawatts. This will be spread across four existing data halls and will be configured to run NVIDIA GPUs. The lease is expected to generate approximately $4.7 billion in contracted base term revenue over the initial 16-year term.

[Haris Basit, Chief Strategy Officer at Bitdeer]

An eight-year renewal option, if exercised, would increase the potential contract value to approximately $8 billion over 24 years, with the tenant termination right at the end of year 10. The lease is structured as a modified gross arrangement. Volta pays a combined base rent and service fee with a 3% annual escalator. Electricity costs are fully reimbursed on a pass-through basis, which protects our margin from energy price volatility and provides a highly predictable cash flow. Over the 16-year base term, we expect this agreement to generate average annual revenue of approximately $2.4 million per IT megawatt.

[Haris Basit, Chief Strategy Officer at Bitdeer]

Importantly, Volta's obligations are anticipated to be backed by an institutional-grade credit structure. This anticipated credit enhancement meaningfully reduces our counterparty risk and improves the financiable quality of these contracted cash flows, which supports our plan to access attractive debt financing terms to fund the remaining development at Tydal. Our remaining capital expenditure is approximately $500 million, which we believe is significantly more capital efficient than a typical greenfield data center build.

[Haris Basit, Chief Strategy Officer at Bitdeer]

We expect to raise project-level financing to fully fund our remaining Tydal capital needs and to provide significant additional capital. Delivery is structured across two equal-sized phases, targeting December 31st, 2026 for the first phase, and March 31st, 2027 for the second. A word on our tenant. Volta is a compute infrastructure developer focused on large-scale AI and data center deployments in power-advantaged markets. Volta has announced a $10 billion strategic partnership with an AI lab and a broader development pipeline exceeding one gigawatt.

[Haris Basit, Chief Strategy Officer at Bitdeer]

In selecting Volta as our partner at Tydal, we evaluated their technical ability to execute a large-scale GPU deployment, the quality and enforceability of their anticipated credit support, and their ability to move rapidly to match the anticipated Tydal construction timeline. It is important to note that Tydal will incorporate leading-edge NVIDIA GPUs, has one of the highest reliability grid connections in Europe, is 100% powered by renewable energy, and has an extremely high energy efficiency with a PUE of approximately 1.1.

[Haris Basit, Chief Strategy Officer at Bitdeer]

Our broader power and infrastructure portfolio stands at approximately 3 GW of total global electrical capacity at the end of the second quarter, up approximately 12% year-over-year. We continue to evaluate opportunities for additional grid-connected and behind-the-meter expansion sites globally across both new and existing sites. Our objective is straightforward: continue acquiring, building, and converting powered infrastructure. We will share updates on our progress here when appropriate.

[Haris Basit, Chief Strategy Officer at Bitdeer]

I will now turn the call over to Michael to walk through our business segment updates and second quarter financial results.

[Michael Potter, CFO at Bitdeer]

Thank you, Haris, and good morning. I'm happy to join everyone for the first time as Bitdeer CFO. Execution remains our top priority. While the Tydal lease that Haris described has now been executed, there is significant work ahead to prepare for the first RFS date. We will update as appropriate as those milestones are achieved. The focus in our view is on the quality of altered demand, robustness of the financing structure, and contractual protections. We believe this transaction compares very favorably on these dimensions, and we look forward to demonstrating that through continued execution.

[Michael Potter, CFO at Bitdeer]

Looking ahead, we see plenty of interest in various sites within our portfolio that could potentially be used as AI/HPC data centers. A key advantage of our model is the ability to utilize capacity for crypto mining until an AI data center is ready, ensuring our power assets remain productive and secured. Turning to our Bitcoin mining business. Self-mining hash rate reached approximately 73 exahash per second at the end of the second quarter, up approximately 342% year-over-year, supported by approximately 243,000 active self-mining rigs.

[Michael Potter, CFO at Bitdeer]

This is an increase of approximately 113% year-over-year. We mined 783 Bitcoin in April, 921 Bitcoin in May, and 990 Bitcoin in June. Total second quarter production was approximately 2,694 Bitcoin, an increase of approximately 377% year-over-year. Our co-mining hash rate also continued to accelerate meaningfully during the quarter. This reflects our continued deployment of SEALMINERs into third-party facilities. It grew over 260% sequentially. We believe our combination of self-mining, co-mining, and hosting gives us multiple channels to monetize our growing SEALMINER production.

[Michael Potter, CFO at Bitdeer]

We have the flexibility to allocate hardware to the channel that offers the best returns as market conditions evolve. Our SEALMINER platform continues to reinforce our structural cost advantage. The commercial launch of our A4 Ultra Hydro unit, operating at 9.45 joules per terahash at the chip level, continues to lower our internal cost per exahash. During the quarter, we also launched the SEALMINER DL1 Hydro, our first machine designed for Scrypt algorithm mining. This broadens our product line beyond Bitcoin-focused hardware.

[Michael Potter, CFO at Bitdeer]

Our internal manufacturing capability means that we're not subject to third-party markups when deploying SEALMINER rigs into our own fleet. This remains a structural cost advantage relative to other mining operators. In July, we broke ground on our first U.S.-based manufacturing site, a 187,000 sq ft SEALMINER manufacturing facility in Sparks, Nevada. This is expected to be completed by the end of 2026 and will be capable of producing 10,000 units per month. It is expected to create approximately 70 high-quality local jobs.

[Michael Potter, CFO at Bitdeer]

At the Massillon, Ohio site, we have 174 MW of capacity currently online for mining, with reconstruction of two previously fire-damaged buildings underway. A significant portion of that cost has been recovered through supplier insurance coverage. We believe the associated capacity to be energized in phases during the third quarter. In June, we broke ground on our Fox Creek, Alberta site, a $155 million investment. It includes a fully permitted 101 MW on-site natural gas power plant with grid interconnection.

[Michael Potter, CFO at Bitdeer]

The site uses a closed-loop dry cooling system. Alberta's bring-your-own generation framework gives us the flexibility to curtail compute workloads and sell power back to the grid. Our AI business continued to scale during the quarter. AI Cloud annual recurring revenue reached approximately $76 million at the end of June, an increase of approximately 77% quarter-over-quarter. Utilization was approximately 95% across 4,248 deployed GPUs. We also signed a new 10-year lease for 21.7 IT MW of capacity in Malaysia, with handover expected in the first quarter of 2027. It is designed to support 128 NVIDIA GB300 NVL72 systems.

[Michael Potter, CFO at Bitdeer]

On the product side, we deployed NVIDIA's Nemotron-3 model onto our Bitdeer AI Model Studio on the first day of its launch. Turning to our financial results. Second quarter revenue was approximately $228.8 million, an increase of approximately 47% year-over-year, and approximately 21% sequentially. The year-over-year growth was driven primarily by the continued expansion of our self-mining hash rate and the associated increase in Bitcoin production, along with accelerating contribution from our AI Cloud business, which contributed $14 million, an increase of approximately 284% sequentially.

[Michael Potter, CFO at Bitdeer]

Total gross profit was -$8.5 million, with a gross margin of approximately -3.7%. Importantly, this represents a $30.5 million sequential improvement that demonstrates the operating leverage of our vertically integrated model. This recovery was driven by two key factors, normalized seasonal power costs, which dropped approximately 15% sequentially, and an improvement in our blended fleet efficiency to 15.8 joules per terahash. On a year-over-year basis, our gross margins reflect continued but moderating pressure from the additional depreciation expense from our expanding mining fleet and the still challenging hash price environment.

[Michael Potter, CFO at Bitdeer]

Adjusted EBITDA was approximately $31.1 million, an increase of approximately 575% over the year and approximately 116% sequentially. This sequential improvement illustrates the operating leverage of our vertically integrated model, as both hash price and power cost dynamics continue to stabilize. Operating loss in the quarter was $101.7 million, and net loss per share was $0.37. Turning to the balance sheet and cash flow. Net cash used in operating activities was approximately $158.5 million, an improvement of approximately $188 million sequentially.

[Michael Potter, CFO at Bitdeer]

This was driven by the capitalization of SEALMINER-related inventory to PP&E as we're allocating those rigs for internal use. We ended the quarter with approximately $496 million in cash equivalents, and restricted cash, compared to approximately $298 million at the end of the first quarter. Total long-term debt was approximately $1.8 billion, a reduction of approximately $78 million sequentially. The increase in cash primarily reflects $457 million in proceeds from our at-the-market equity program during the quarter.

[Michael Potter, CFO at Bitdeer]

We view this as a prudent capital raise, establishing the liquidity reserve necessary to execute on our AI/HPC pipeline, powered land acquisition priorities, and to help ensure that our Tydal site progresses on schedule. Today, we filed a new shelf registration statement since our previous shelf, which was about a year and a half old, had largely used up its capacity. We now qualify as a well-known, seasoned issuer, which makes us eligible for automatic shelf registration. Considering the increased size and scale of our business, we also filed a prospective supplement to move our existing ATM program to the new shelf and take down $1 billion for offering under that program.

[Michael Potter, CFO at Bitdeer]

Looking ahead, we expect to broaden our sources of capital, with much of our remaining 2026 financing needs to be met through project-level debt financing, anchored by our previously discussed goals of accessing the debt markets for Tydal. We expect this debt financing will also unlock significant incremental liquidity to support our broader AI/HPC pipeline. Our preference is to prioritize non-dilutive project-level financing over equity issuance wherever the underlying contracted cash flows support it.

[Michael Potter, CFO at Bitdeer]

Consistent with this, in Q2, our Bitcoin wafer spend was funded entirely through cash generated by our mining operations and debt collateralized by our wafer bank, not equity issuance. In terms of guidance, we're revising our full-year crypto mining infrastructure capital expenditures to $200 million-$280 million, driven by additional infrastructure development opportunities we see in North America. As a reminder, this guidance excludes CapEx for SEALMINER hardware, GPUs, AI Cloud, or colocation development.

[Michael Potter, CFO at Bitdeer]

On expenses, we continue to actively manage our overhead as we scale the organization to support our expanding colocation and AI Cloud businesses alongside our core mining and ASIC manufacturing operations. We expect our general administrative expense run rate in the second half to reflect the incremental headcount in infrastructure needed to support that growth. To summarize, the second quarter was a solid quarter for Bitdeer. In the past few months, we have clearly demonstrated our ability to deliver against our HPC/AI objectives.

[Michael Potter, CFO at Bitdeer]

We executed our first major AI infrastructure colocation lease agreement at Tydal, officially launching our colocation data center business as a core pillar of our company. We reached this milestone on compelling terms and with a partner, Volta, we are excited to work with. Our underlying power portfolio continues to scale. Our AI Cloud business is demonstrating strong momentum, and our Bitcoin mining and SEALMINER platforms illustrates the benefits of vertical integration. Thank you for joining us this morning. Operator, please open the call for questions.

[Operator]

Thank you. Ladies and gentlemen, as a reminder, to ask a question at this time, you will need to press star one one on your touchtone telephone and wait for your name to be announced. Please stand by while we compile the queue in advance. Our first question coming from the lineup, Nick Giles with B. Riley Securities. Your line is now open.

[Nick Giles, Analyst at B. Riley Securities]

Yeah. Thanks, operator. Good morning, everyone. Guys, congrats on getting the first deal done here. You spoke to the pipeline and looking at new opportunities globally. I was just hoping you could frame up kind of some of the opportunities you're seeing outside of the U.S., how near-term these opportunities could be. Thanks very much.

[Michael Potter, CFO at Bitdeer]

I want to make sure I understand your question. You want to know what our opportunities are outside the U.S.?

[Nick Giles, Analyst at B. Riley Securities]

Exactly. Yeah. Just hoping to get a better sense for the pipeline ex-U.S. How many megawatts are you assessing today, and what's the earliest that some of these megawatts could be brought online?

[Michael Potter, CFO at Bitdeer]

I'm sure Jihan could give some additional color on this, but we do have a lot of large Asia-based potential customers that are slowly starting to turn online. Our existing GPUs in Asia are quite used up. We're expecting to add more capacity as customers come online. I don't know if Jihan has anything additionally he wants to talk about.

[Jihan Wu, Founder, Chairman, and CEO at Bitdeer]

On the GPU deployment, I think in the near future, mostly it's in Malaysia. We have data center already signed up, we also have other opportunities in active discussion. The demand side is also very strong and usually it is multi-year and highly profitable contract. The bottleneck right now is our execution. We are quite busy on execute those AI Cloud contract business in Malaysia. Norway will be the next. We reserved like 15 MW. A little bit less than 15 MW, I can note in Norway ourselves.

[Jihan Wu, Founder, Chairman, and CEO at Bitdeer]

That will be a little bit later than in Malaysia. It is expected within next year. We will have some of our U.S. data center activated, like in Tennessee and Washington.

[Nick Giles, Analyst at B. Riley Securities]

Thanks for that. No, that's helpful. Would you consider any new sites outside of the U.S. for colocation purposes, or are you seeing any opportunities for expansion in your European footprint on the colocation side?

[Jihan Wu, Founder, Chairman, and CEO at Bitdeer]

We are actively looking for other power assets opportunities in Europe. Since we haven't done any deal yet, I think it's too early to really talk about our plan in Europe. Right now, our focus should be on execute the deal in Tydal. I think that's very important for us. If we can execute that, we will generate revenue and cash flows. I think that's. It will also generate kind of credibility of our data center executions. I think that's super important for us right now.

[Nick Giles, Analyst at B. Riley Securities]

Understood. Maybe one more if I could. I saw, if I read correctly, just at the Knoxville site, there was a full redesign of the project, and I believe ready-for-service time was slightly pushed out. Can you just talk about, maybe provide some additional background on what drove that? Was that potential customer driven? Was that to kind of better fit NVIDIA architectures? What was the reason for that?

[Michael Potter, CFO at Bitdeer]

I don't know if you want to talk about that, Haris, or you want me to jump in on it.

[Haris Basit, Chief Strategy Officer at Bitdeer]

I think, probably best for you, Michael.

[Michael Potter, CFO at Bitdeer]

When we have been going to market and looking at the requirements around our Tydal Norway site, originally, we had expected Tydal to be two different projects. The market demand is more for a single, more monolithic amount of megawatts offered in one place. We redesigned it, instead of having two separate smaller sites inside our bigger site to just be one data hall complex. That was the redesign we did, and it's reflected from the discussions we've had with potential customers and what their requirements are.

[Haris Basit, Chief Strategy Officer at Bitdeer]

Yeah. The expectation actually aligns with the second phase. There will be no phase I, phase II. It's only one phase. It will all be online and at the same time. If we look at the expected phase II, I think that's actually not pushed out a lot, there will be no phase II early activation.

[Nick Giles, Analyst at B. Riley Securities]

Got it. That's very clear. Okay. Well, guys, I appreciate the update. I'll turn over, nice work.

[Operator]

Thank you. Our next question in queue coming from the line of Mike Grondahl with Northland Capital Markets. Your line is now open.

[Michael Grondahl, Analyst at Northland Capital Markets]

Hey, guys. Thank you. Could you spend a minute on how you decided on Volta and kind of what maybe their ultimate demand is? Then secondly, Rockdale and kind of Clarington. What are next steps at both of those sites? Thank you.

[Haris Basit, Chief Strategy Officer at Bitdeer]

Maybe I'll start with the Volta side, then can have Michael or Jihan speak to the other sites. In why we chose Volta was really, they have done a great job, actually, in finding innovative ways of addressing this business in both the capital markets, the customer that they have obtained, and their contracts with the customer. They also were able to move rapidly, which is something that we wanted to see at the Tydal site since that site is coming online in just a few months. In general, the commercial terms were also very favorable.

[Haris Basit, Chief Strategy Officer at Bitdeer]

We thought that they were the right choice for us at the Tydal site. Their ultimate demand can be much larger, but of course, they're just getting started. The initial lease is for 121 IT MW.

[Michael Grondahl, Analyst at Northland Capital Markets]

Got it. Just an update on next steps at Rockdale and Clarington.

[Michael Potter, CFO at Bitdeer]

I don't know if Jihan wants to add some further color, but we're continuing to build out the power infrastructure, as per our previously discussed timeline in Rockdale. That was something that was predating the Batch Zero or the allocation of the power in the site. We're preparing in the background what we believe we need to do if we want to do an AI data center at that site. Clarington, we're developing it for crypto mining right now. The power is available coming up soon. We'd like to be able to make sure we use it fully.

[Michael Potter, CFO at Bitdeer]

There's no big update on the lawsuit in Clarington now. The motion to dismiss that we had filed was turned down by the judge, which is pretty common in these pre-trial things. It's gone into discovery now. We continue to believe that the lawsuit doesn't have any merit. We continue to work on that.

[Michael Grondahl, Analyst at Northland Capital Markets]

Got it. Okay. Thank you.

[Operator]

Thank you. Our next question coming from the line of Kevin Cassidy with Rosenblatt Securities. Your line is now open.

[Kevin Cassidy, Analyst at Rosenblatt Securities]

Yeah, thanks for taking my question, and congratulations on landing Volta. Two things on that. Well, maybe with the Texas government putting a pause on the new data center grid, maybe Haris, you might have touched on that, but how does that affect your co-location opportunities in Texas?

[Haris Basit, Chief Strategy Officer at Bitdeer]

Michael, do you want to answer that one?

[Michael Potter, CFO at Bitdeer]

It's still a little bit early to make strong comments on that because the actual criteria haven't come out yet. The one big site we have in Texas, which is Rockdale, that site, all the activity there is pre-Batch Zero and not related to that that we're working on. As the actual news gets out and the criteria come out, I think we'll be in a better position to be more specific in our comments.

[Kevin Cassidy, Analyst at Rosenblatt Securities]

Okay, great. With Volta, a large neo-cloud and worldwide, is there a chance to just expand your relationship with them to other sites?

[Haris Basit, Chief Strategy Officer at Bitdeer]

There is that potential, of course, with Volta, but we haven't released any information on that yet.

[Kevin Cassidy, Analyst at Rosenblatt Securities]

Okay. Maybe I'll ask one other, is that how should we be modeling SEALMINER rigs going forward for external sales?

[Michael Potter, CFO at Bitdeer]

Right now, the existing wafer inventory that we have, we've designated for internal use. With the very challenging hash rate and our desire to expand our ability to do self-mining and co-mining, we made the decision to use it internally. We have the capability and the capacity to deploy it, and that's the best way to get that working and earning us some cash. It is an example of our model being extremely flexible in that we do have a fair amount of powered land that's in earlier stages of development for other uses that we can quickly deploy cryptocurrency mining into it and make sure we generate cash off the power.

[Michael Potter, CFO at Bitdeer]

Also, if you keep using the power, it's less likely that the utility will try and move it away from the land. It's important that we can quickly react when we do get land into our portfolio and use it, and the crypto mining that we do is a big advantage there.

[Kevin Cassidy, Analyst at Rosenblatt Securities]

Okay. Great strategy. Thank you.

[Operator]

Thank you. Our next question in queue coming from the line of John Todaro with Needham. Your line is now open.

[John Todaro, Analyst at Needham]

Hey, guys, thanks for taking my question, and congrats on the lease. First question, just as it relates to the lease, it was 133 gross megawatts signed. I think we have that site going for 225. Just trying to understand why Volta didn't go for the full amount, and are you keeping some for cloud? If so, I guess why and the strategy there? Then I have a follow-up.

[Michael Potter, CFO at Bitdeer]

The full amount of power there is actually 180 gross megawatts. Of that 180 gross megawatts, we're leasing 133 gross megawatts, which would be 121 IT MW to Volta, and then retaining 47 MW gross for our own AI Cloud use there. As you know, this market is dynamic. There's a lot of activity in both the co-location and AI Cloud space. We think there's still a lot of opportunities for us in Norway with the 47 MW that we've retained, and we haven't made final decisions on exactly how that would be deployed and for whose benefit in terms of the ultimate tenants there.

[Michael Potter, CFO at Bitdeer]

We think that's a significant potential upside for us, and we felt it would be beneficial for us to retain that power for ourselves.

[John Todaro, Analyst at Needham]

Understood. Just one on the credit guarantee. We've seen some in the past where you have kind of a neo-cloud and your off-taker is an Anthropic-like entity, but there's still either the chip manufacturer or a hyperscaler involved in the credit guarantee. I guess, can you just walk us through a bit more how that process worked and what maybe some of the other avenues you were looking at before ultimately settling on the way it's structured now?

[Michael Potter, CFO at Bitdeer]

Yeah. I don't want to speak about the alternatives that we looked at since those are proprietary in many cases. The letter of credit structure here I think is quite useful, and it might be quite useful to the industry as a whole because for the first time it has backing or credit backing from someone other than, as you said, someone who's a chip vendor or a hyperscaler. It opens up additional funding opportunities and it is a very high rating for letters of credit from the types of banks that we expect these letters of credit to come from.

[Michael Potter, CFO at Bitdeer]

We know this is innovative and new to the industry, but we think it's going to be something that catches on.

[John Todaro, Analyst at Needham]

Okay. Understood. Thank you for that, congrats again on the week.

[Operator]

Thank you. Our next question in queue coming from the line of Brett Knoblauch with Cantor Fitzgerald. Your line is now open.

[Brett Knoblauch, Analyst at Cantor Fitzgerald]

Hi, guys. Thank you for taking my question, and I just have a few. Haris, on the Tydal lease, you kind of talked about an additional $500 million of CapEx needed. Curious how much money you guys have put into that site, excluding the additional CapEx you need.

[Haris Basit, Chief Strategy Officer at Bitdeer]

Actually, let me ask Michael to answer that question for how much has actually been put in. I mean, we've put hundreds of millions of dollars of development into the site already, some of which has actually been spent around the AI data center and originally developing the site to be used as a cryptocurrency site. We made a reasonably significant investment in there in the past, which prepared us so that we could act very quickly when this opportunity came up.

[Haris Basit, Chief Strategy Officer at Bitdeer]

This is more of a brownfield or semi-developed site than a complete greenfield, so it allowed us to act very quickly and meet the timelines that Volta was hoping for.

[Brett Knoblauch, Analyst at Cantor Fitzgerald]

Understood. Thank you. Just high level, how should we think about how you're going to allocate capital between maybe leasing some of the power land you have and building your own AI or expanding your AI Cloud business? I guess, if we think about Volta and your AI Cloud, to some extent, they probably compete against each other. You're both selling compute. Is there a preference for you to want to be bigger on the cloud side? Is this going to be a mixed approach? I guess, how are you guys thinking of it internally?

[Michael Potter, CFO at Bitdeer]

I think Jihan can give some deeper color on that, but we're remaining flexible. If there's a good co-location deal that we feel it's in the best interest of the company to do, we can still execute on something like that. If we look at what we can do around owning the GPUs ourselves or providing the GPUs ourselves and serving a customer ourselves, that's something that we'd strongly consider as well. We haven't said that we're going to do one or the other as the exclusive way to do it.

[Brett Knoblauch, Analyst at Cantor Fitzgerald]

Awesome. Maybe if I could just follow up with one more. As I look at kind of 3 gigs of existing power and power coming online over the next several quarters, I guess, is there a site that we should be focusing on that is most ready or the next catalyst to either be leased or to be converted or anything we should think about the future catalyst around here?

[Michael Potter, CFO at Bitdeer]

I think Jihan talked about this a little bit earlier, that in Asia we have ability to grow quickly in Malaysia because of the new site that we've signed up in Malaysia. In the very short term, I think Malaysia is the one you see the most activity on. If you look at the table we provide, Washington State and Tennessee are the two that are sort of designated specifically for that we're actively working on and doing construction and such. In terms of any soon news, those are two that are most likely to come out.

[Michael Potter, CFO at Bitdeer]

The other sites, it's really depending on where we are with our discussions with customers and what we decide to turn on that matter. As that happens, we'll make sure we'll update everybody.

[Brett Knoblauch, Analyst at Cantor Fitzgerald]

Awesome. Thank you, guys. Appreciate it.

[Operator]

Thank you. Our next question in queue coming from the line of Mike Colonnese with H.C. Wainwright. Your line is now open.

[Mike Colonnese, Analyst at H.C. Wainwright]

Hi. Good morning, guys. Congrats on the Tydal deal. Great to see. I have two. First on the AI HPC business. Haris, you touched on this a bit earlier, but I just wanted to follow up on it. If you could just talk about the preferred use for the additional 47 MW of gross capacity at Tydal at this stage. It sounds like you're considering either the GPU as a service type model or another colocation deal. If you were to do a colocation type of contract, would Volta be interested in this incremental capacity, or would you be marketing that out to new prospective tenants?

[Michael Potter, CFO at Bitdeer]

I don't really want to speak for Volta here on this call, there is a lot of interest from Volta in expanding our relationship, and we will consider it, along with other options.

[Mike Colonnese, Analyst at H.C. Wainwright]

Just given where GPU pricing is, obviously you guys have had some success in that business as well. Would you say you're more or less likely to deploy your own GPUs to use that additional 47 MW, or do you think at this juncture, colocation model would be the preferred way?

[Michael Potter, CFO at Bitdeer]

We haven't made any final decisions for the 47 MW, if you're looking for a forward-looking comment there, I know Jihan, if you want to add some color there.

[Jihan Wu, Founder, Chairman, and CEO at Bitdeer]

Actually, there are already some interested customers talking with us on those capacities. For any GPU deal, we need to considering about the financing and the deployment technical together. I think right now it's not quite the right time to talk about too much. Our execution line, I think Malaysia right now is more in the front of it. Which means we look a lot of interest from customers, and we will focus them to discussing with some Malaysia capacity. After that, we will start to execute those Tydal's 47 MW of AI Cloud.

[Mike Colonnese, Analyst at H.C. Wainwright]

One more from me, just on the Bitcoin mining side. Bitdeer has been one of the few miners that has continued to aggressively expand capacity in this environment, really positioning you well for the next stage of the cycle here. Just curious how we should think about hash rate growth in the back half of the year. Sounds like you have the wafer inventory to develop, deploy, manufacture your own SEALMINERs for your proprietary use. Just trying to think through the best way to model hash rate expansion from here.

[Michael Potter, CFO at Bitdeer]

I think in general for modeling purposes, if you look at the steady increase we've had over the last few quarters, it'll be similar to that, where we're deploying about the same amount of mining machines per month going forward. I don't think we'll be greatly accelerating from where we are, but I think steady deployment at a reasonably high rate as we've shown over the last few quarters.

[Mike Colonnese, Analyst at H.C. Wainwright]

Very helpful. Thank you for taking my questions.

[Operator]

Thank you. Our next question coming from the line of Brian Kinstlinger with Alliance Global Partners. Your line is now open.

[Analyst at Alliance Global Partners]

Hi, this is Kevin for Brian. Thanks for taking our questions. For the Tydal site, what tasks does Bitdeer need to accomplish between now and the beginning of both phases I and II?

[Michael Potter, CFO at Bitdeer]

Well, phases I and II are full RFS, right? They will be completely ready for the customer's GPUs at that time.

[Haris Basit, Chief Strategy Officer at Bitdeer]

We have all of the long lead time items have been ordered. They will arrive, the scheduled arrivals are before the respective RFS dates. We have to finish installing those. There's a commissioning part of it that is also very critical. It's in very good state right now. We've had an engineering analysis, and it looks like we're going to hit our target dates. There's probably 100 things to do. Off the top of my head, I can't name what they are, but there's hundreds of people on site working on this, and it's moving ahead.

[Haris Basit, Chief Strategy Officer at Bitdeer]

There's no specific item that stands out that is more critical than the others that could potentially cause a problem. We feel like we're in a pretty good position to hit those dates.

[Analyst at Alliance Global Partners]

Got it. Thank you. Bitdeer recently announced it will lease a 21.7 MW data center in Malaysia for AI Cloud. Can you share some more details, like the costs and how you'll finance the GPUs and any other infrastructure needed, when you expect this data center will be ready for your customers? Maybe could you share a range at full capacity of what the annual revenue run rate would be for this data center? Thank you.

[Michael Potter, CFO at Bitdeer]

Yeah. It's a little bit early to talk about specifics and forward forecasts on that. I'm sure that Jihan can give some additional color, but we do have several customers that are interested in it. The GPU financing will depend on whatever contract we have, and how it needs to be done based on that contract. When you have a good quality customer backstopping the use of the GPU, it's normally much more straightforward to find financing for GPUs.

[Operator]

Thank you.

[Analyst at Alliance Global Partners]

Thank you.

[Operator]

Our last question are coming from the line of Ben Sommers with BTIG. Your line is now open.

[Ben Sommers, Analyst at BTIG]

Hey, good morning, guys, and thanks for taking my question. Haris, you mentioned some exploring behind the meter opportunities, and I know you guys are doing some on-site generation in Alberta, but any additional color you can provide on preliminary conversations or steps you've taken to develop some behind the meter power moving forward?

[Haris Basit, Chief Strategy Officer at Bitdeer]

Other than us talking about Alberta in the past, I think it's too early to talk about that at any other site. If any of those things develop further, we can mention it in the future.

[Michael Potter, CFO at Bitdeer]

We have talked about Alberta, that this being the first site, but that we do have the ability to expand it. This is sort of a test of concept for us in Alberta. Underneath the program they have there of bring your own power, and the availability of stranded gas in quite a few locations in Alberta, which sort of ensures you get reasonable supply at reasonable costs. It is a site that, if Fox Creek works well for us, we can expand in. Using the same model and the capability we've been developing internally.

[Michael Potter, CFO at Bitdeer]

We have looked at other sites that we can do more in, and if we decide to do it, we'll update everybody at that time.

[Ben Sommers, Analyst at BTIG]

Super helpful. Just on the AI Cloud business quickly. We've touched on the expansion there. Just curious what you're seeing in terms of term length for new GPU Cloud contracts and maybe how that's compared or how that's changed over the past 90 days.

[Michael Potter, CFO at Bitdeer]

Haris or Jihan, do you have any comment on that?

[Jihan Wu, Founder, Chairman, and CEO at Bitdeer]

Well, right now, what we are discussing with our customers on the GPU contract, mostly focusing on those long-term contracts. I mean, five years. We are not spending pretty much time on talking contract that is shorter than that. Our expansion will mostly be supported by this kind of a long-term contract.

[Ben Sommers, Analyst at BTIG]

Super helpful. Thank you guys for taking my questions.

[Operator]

Thank you. There are no further questions in the queue at this time. I will now turn the call back over to Michael Potter for any closing comments.

[Michael Potter, CFO at Bitdeer]

Thanks everyone for joining us, and we look forward to speaking again soon. Operator, you can end the call.

[Operator]

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Executives

• Haris Basit, Chief Strategy Officer
• Michael Potter, CFO

Analysts

• Tesh Dahya, Head of Investor Relations at Bitdeer
• Nick Giles, Analyst at B. Riley Securities
• Jihan Wu, Founder, Chairman, and CEO at Bitdeer
• Michael Grondahl, Analyst at Northland Capital Markets
• Kevin Cassidy, Analyst at Rosenblatt Securities
• John Todaro, Analyst at Needham
• Brett Knoblauch, Analyst at Cantor Fitzgerald
• Mike Colonnese, Analyst at H.C. Wainwright
• Analyst at Alliance Global Partners
• Ben Sommers, Analyst at BTIG