Bitdeer Technologies Group Q2 Earnings Call Highlights

Key Points

• AI colocation is becoming a core business: Bitdeer signed a 16-year Tydal, Norway lease with Volta expected to generate about $4.7 billion in contracted revenue, with potential value rising to $8 billion if renewed. The project still requires roughly $500 million in capital expenditures.
• Mining capacity and production surged: Self-mining hash rate rose 342% year over year to about 73 EH/s, while second-quarter Bitcoin production increased 377% to approximately 2,694 BTC. SEALMINER deployments and new manufacturing and power projects are expected to further expand capacity.
• Financial performance improved but losses persisted: Revenue increased 47% year over year to $228.8 million, adjusted EBITDA rose 575% to $31.1 million, and AI Cloud revenue jumped 284% sequentially to $14 million. However, gross profit remained negative at $8.5 million and the company reported a $101.7 million operating loss.

Bitdeer Technologies Group NASDAQ: BTDR reported higher second-quarter revenue and a sharp improvement in adjusted EBITDA as growth in self-mining capacity and AI Cloud operations offset continued pressure on gross margins from depreciation and Bitcoin mining economics.

The company also highlighted its recently announced 16-year colocation lease agreement at its Tydal, Norway campus, which management described as the formal launch of AI infrastructure colocation as a core business line alongside AI Cloud, Bitcoin mining, and ASIC development and manufacturing.

Tydal Lease Adds Long-Term AI Colocation Revenue

Haris Basit, Bitdeer’s chief strategy officer, said subsidiary Tydal Data Center AS signed the lease and services agreement with Volta on Aug. 4. Under the agreement, Bitdeer will provide 121 IT megawatts, supported by approximately 133 gross megawatts, across four existing data halls configured for NVIDIA GPUs.

The base 16-year term is expected to generate approximately $4.7 billion of contracted revenue. Volta has an eight-year renewal option that could bring the potential value to about $8 billion over 24 years, although the tenant has a termination right at the end of year 10.

The modified gross lease includes combined base rent and service fees with a 3% annual escalator, while electricity costs will be reimbursed on a pass-through basis. Basit said the structure is intended to protect Bitdeer’s margins from energy-price volatility and create predictable cash flow. Average annual revenue is expected to be approximately $2.4 million per IT megawatt over the initial term.

Bitdeer expects Volta’s obligations to be supported by an institutional-grade credit structure. Management said the anticipated credit enhancement should reduce counterparty risk and support efforts to obtain project-level debt financing for the remaining development work.

The company estimates that roughly $500 million of capital expenditures remain at Tydal. It expects project financing to fund those requirements and provide additional capital. The first half of the deployment is targeted for Dec. 31, 2026, with the second half targeted for March 31, 2027.

Basit said Tydal has a grid connection that is among Europe’s most reliable, runs on renewable power and has a power usage effectiveness, or PUE, of about 1.1. Bitdeer retained 47 gross megawatts of the campus’s 180 gross megawatts for potential AI Cloud use. Management said it has not made a final decision on how that capacity will be deployed, though it is in discussions with interested customers.

Mining Fleet and SEALMINER Deployment Expand

Bitdeer’s self-mining hash rate reached about 73 exahashes per second at the end of the quarter, up about 342% from a year earlier. The company had approximately 243,000 active self-mining rigs, representing a 113% year-over-year increase.

Bitcoin production totaled approximately 2,694 Bitcoin during the second quarter, up roughly 377% year over year. Monthly production was 783 Bitcoin in April, 921 Bitcoin in May and 990 Bitcoin in June.

Chief Financial Officer Michael Potter said co-mining hash rate increased more than 260% sequentially as the company deployed SEALMINER machines at third-party facilities. He said Bitdeer can direct its internally manufactured mining hardware among self-mining, co-mining and hosting channels based on expected returns.

During the quarter, Bitdeer continued the commercial launch of its SEALMINER A4 Ultra Hydro unit, which management said operates at 9.45 joules per terahash at the chip level. The company also launched the SEALMINER DL1 Hydro, its first machine for Scrypt-algorithm mining.

In July, Bitdeer broke ground on a 187,000-square-foot SEALMINER manufacturing facility in Sparks, Nevada. The facility is expected to be completed by the end of 2026, produce up to 10,000 units per month and create approximately 70 jobs.

At its Massillon, Ohio site, Bitdeer has 174 megawatts online for mining and is rebuilding two fire-damaged buildings. Management said a significant portion of reconstruction costs has been recovered through supplier insurance coverage, with related capacity expected to be energized in phases during the third quarter.

The company also began construction in June on a $155 million Fox Creek, Alberta project, including a fully permitted 101-megawatt on-site natural gas power plant and grid interconnection. Potter said Alberta’s bring-your-own-generation framework will allow the company to curtail compute workloads and potentially sell power to the grid.

AI Cloud Revenue Gains Momentum

Bitdeer’s AI Cloud annual recurring revenue reached approximately $76 million at the end of June, up about 77% sequentially. Utilization was approximately 95% across 4,248 deployed GPUs.

The company signed a 10-year lease for 21.7 IT megawatts in Malaysia, where handover is expected in the first quarter of 2027. The facility is designed to support 128 NVIDIA GB300 NVL72 systems.

Founder, Chairman and Chief Executive Officer Jihan Wu said Malaysia is the company’s near-term focus for AI Cloud execution, citing strong customer demand and active discussions for multiyear, profitable contracts. He said Bitdeer is generally prioritizing GPU contracts with terms of around five years rather than shorter-duration arrangements.

Revenue Rises, While Net Loss Continues

Second-quarter revenue was approximately $228.8 million, up about 47% from a year earlier and 21% from the prior quarter. Management attributed the year-over-year increase primarily to higher self-mining hash rate and Bitcoin production, as well as growth in AI Cloud revenue.

AI Cloud contributed $14 million in revenue, an increase of approximately 284% sequentially.

• Total gross profit was negative $8.5 million, compared with a sequential improvement of $30.5 million.
• Gross margin was negative 3.7%.
• Adjusted EBITDA was approximately $31.1 million, up 575% year over year and 116% sequentially.
• Operating loss was $101.7 million.
• Net loss per share was $0.37.

Potter said the sequential gross-profit recovery reflected a roughly 15% decline in seasonal power costs and improved blended fleet efficiency to 15.8 joules per terahash. He said year-over-year margins continued to reflect added depreciation from the company’s expanding mining fleet and a challenging hash-price environment.

Bitdeer ended the quarter with approximately $496 million in cash equivalents and restricted cash, compared with approximately $298 million at the end of the first quarter. The increase primarily reflected $457 million of proceeds from the company’s at-the-market equity program. Long-term debt totaled approximately $1.8 billion, down about $78 million sequentially.

The company filed a new shelf registration statement and moved its existing at-the-market program to the new shelf, with $1 billion available under the program. Potter said Bitdeer expects much of its remaining 2026 financing needs to be met through project-level debt financing and said the company prefers non-dilutive financing when contracted cash flows can support it.

Bitdeer revised its full-year crypto-mining infrastructure capital expenditure guidance to $200 million to $280 million, citing additional North American infrastructure development opportunities. The guidance excludes capital expenditures for SEALMINER hardware, GPUs, AI Cloud and colocation development.

About Bitdeer Technologies Group (NASDAQ:BTDR)

Bitdeer Technologies Group 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.

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