• Revenue rose 89% YoY to $320.7 million, driven by increased Bitcoin production and AI services
  • Adjusted EBITDA surged 173% to $69.6 million, though gross margin fell to 3.4% from 23.4%
  • Net loss widened to $125.5 million, including a $54.6 million noncash loss on digital assets
  • AI Cloud revenue jumped to $20.4 million with a $2.9 billion revenue backlog secured

*this image is generated using AI for illustrative purposes only.

Bitdeer Technologies Group (NASDAQ: BTDR) reported record third-quarter revenue of $320.7 million, an 89% increase year-over-year, driven by Bitcoin mining expansion and growing artificial intelligence demand. Despite the top-line surge, the company posted a net loss of $125.5 million, widening from $30.1 million in the prior-year period.

The company’s adjusted EBITDA rose 173% to $69.6 million. However, profitability was pressured by rising electricity and depreciation costs, which caused gross margin to contract sharply to 3.4% from 23.4% a year earlier. The widened net loss included a $54.6 million noncash loss tied to a digital asset loan.

Mining operations drive core revenue

Bitcoin production increased significantly to 3,855 BTC from 1,109 BTC in the same quarter last year. Proprietary hash rate reached 86.4 EH/s, up from 35 EH/s. Self-mining generated $217.5 million in revenue, while co-mining contributed $59.9 million.

Prior year figures derived from YoY percentage changes provided in source.

AI cloud segment expands

The AI Cloud segment emerged as a key growth area, with revenue climbing to $20.4 million from $1.8 million a year earlier. The company secured 332 megawatts of AI Cloud IT capacity and reported a revenue backlog of $2.9 billion.

Key developments in the AI sector include:

  • A $4.7 billion AI data center lease in Norway, potentially worth $8 billion with extensions.
  • $1.7 billion in expected revenue commitments in Malaysia.
  • Plans to expand capacity using Nvidia’s GB300 and Vera Rubin platforms.

CFO Michael Potter stated that the company is converting AI demand into long-duration contracts.

Balance sheet and liquidity

As of September, Bitdeer held $213.7 million in cash, equivalents, and restricted cash. This liquidity position stands against $1.95 billion in borrowings. The significant debt load relative to cash on hand highlights the capital-intensive nature of its infrastructure expansion.

What the numbers show

A divergence exists between operational scale and bottom-line performance. While revenue nearly doubled and adjusted EBITDA more than doubled, the gross margin collapse from 23.4% to 3.4% indicates that cost inflation in energy and depreciation is outpacing revenue gains. Furthermore, the net loss is heavily influenced by non-operating factors; excluding the $54.6 million noncash loss, the operational loss would be narrower, yet still substantial given the margin compression.

How will Bitdeer's plan to integrate Nvidia's GB300 and Vera Rubin platforms impact its capital expenditure requirements and future depreciation schedules?

What specific financing strategies will Bitdeer employ to service its $1.95 billion debt load given the current negative free cash flow and low liquidity?

Can Bitdeer successfully reverse the gross margin contraction to 3.4% as it scales AI cloud operations, or will energy cost inflation continue to erode profitability?