Bitdeer Posts Record $320.7M Quarter as AI Backlog Climbs to $2.9B

Bitdeer Technologies Group delivered its strongest quarter as a public company, reporting record third-quarter 2026 revenue of $320.7 million, up 89% year-over-year and 40% sequentially, as Bitcoin mining and a rapidly scaling AI cloud business fired on all cylinders. But the headline top-line beat masked a $125.5 million net loss that management attributed largely to non-cash, timing-related items.

"The third quarter was a record quarter for Bitdeer," CFO Michael Potter told analysts on the call. "Gross profit turned positive, and Adjusted EBITDA more than doubled quarter-over-quarter."

Key Financial Metrics

Loss Reflects Non-Cash Items, Not Operating Weakness

The net loss of $125.5 million, or $0.46 per share, was driven by $125.8 million in depreciation and amortization and a $54.6 million non-cash fair value loss on Bitcoin-denominated borrowings as Bitcoin prices rose during the quarter. Potter emphasized that the loss does not reflect operating deterioration.

"Because we repay our Bitcoin-denominated borrowings with mined Bitcoin, the fair value loss on these borrowings is a non-cash, timing-related impact," he said.

Cash flow was a different story. Operating cash flow was approximately $6 million, but including $221.5 million of mined Bitcoin sold during the quarter, Bitdeer generated roughly $227 million in cash.

Crypto Mining: Record Production, Improving Efficiency

The crypto platform remains Bitdeer's revenue engine in the near term. The company mined 3,855 Bitcoin in the quarter, up 43% sequentially, with September setting a record at 1,355 Bitcoin. Self-mining hash rate reached approximately 82.3 exahash per second, and co-mining revenue surged 140% quarter-over-quarter to $59.9 million.

Power cost per Bitcoin mined held at approximately $36,000, in line with the second quarter despite higher average electricity prices of 4.7 cents per kilowatt hour, and down sharply from $49,000 a year ago. Fleet efficiency improved to 15.4 joules per terahash from 20.1 J/TH a year earlier.

"Maintaining a leading fleet efficiency position is particularly important during periods of lower Bitcoin prices, helping preserve margins and operating flexibility," Potter said.

Management announced it will slow the pace of new capital investment in crypto mining in 2027, guiding 2026 crypto mining infrastructure capex to at or below $200 million — the low end of its prior $200 million-$280 million range. CEO Jihan Wu noted tighter TSMC wafer availability due to AI demand and said the company has no plans to enter Zcash mining, citing fierce expected competition, but will expand in Scrypt mining where revenue per megawatt is higher than Bitcoin mining.

AI Cloud: Prepayments Fund Half of GPU Deployments

The AI cloud segment generated $20.4 million in revenue, up 46% sequentially and more than 11 times the year-ago figure, with 4,328 GPUs deployed at approximately 95% utilization. The segment posted $3.1 million in gross profit — a 15% margin — a significant turnaround from gross losses of $2.3 million in Q2 2026 and $0.8 million in Q3 2025. Annualized run-rate reached approximately $86 million.

The contracted backlog tells a broader story. AI cloud backlog stands at approximately $2.9 billion, including more than $800 million from the sold-out 9.5 MW A102 facility in Malaysia and more than $1.7 billion from the 70%-contracted 21.7 MW A201 site. Combined with the approximately $4.7 billion base-term lease value for the Tydal HPC project in Norway, total expected contracted AI platform revenue is approximately $7.6 billion.

Potter noted that signed AI cloud contracts and opportunities under negotiation now exceed $10 billion in combined value, though he cautioned the latter is not a binding commitment.

Average revenue per megawatt per year is approximately $17 million for A102 and more than $21 million for A201, with both sites representing more than $500 million in annualized revenue once fully deployed.

Bitdeer also expanded its secured AI cloud capacity to approximately 332 IT megawatts — about 95% of its 350 IT megawatt target for the first quarter of 2028 — adding the 65.1 MW A202 site in Johor, the 67 MW A901 site, and the 60 MW Vera Rubin-ready A103 facility at Cyberjaya.

Tydal on Schedule, Financing in Focus

Tydal phase one remains on schedule for delivery by year-end 2026, with customer installations beginning in January. Phase two data hall deliveries are expected at the end of the first quarter of 2027. Potter said approximately $500 million remains to be spent to complete construction across both phases, and the company would seek at least $500 million in project financing, aiming to pull out some equity previously invested.

Volta, the tenant, secured its GPU financing — a development Potter said removed the last major item needed to activate the letters of credit.

"The fact that the power was on and working for Bitcoin mining before we converted the site to AI, so we do not need to hope that utility will provide the power because it is there already, and the strength of the LC backstop that we have will help us there," Potter said.

Q&A: Prepayments, Rockdale, and Regulatory Uncertainty

Analysts pressed on financing strategy and execution risks throughout the call. On AI cloud prepayments, Jihan Wu said they will remain about 50% of GPU deployment costs, and argued that tightening capital markets for neoclouds are actually strengthening Bitdeer's position.

"The capital market is closing the door for all the neoclouds," Wu said. "Basically, the situation is, not any neoclouds or any of our competitors will be able to do any new CapEx without very good support from the client themselves. Which means that we don't have any kind of meaningful competitions that are willing to accept really no prepayment."

Wu added that Bitdeer will focus on neolabs and AI startups, which he described as "very underserved," rather than hyperscalers with less favorable terms.

On Rockdale, Wu said the recently acquired land is sufficient for the AI transition, but the company is still awaiting additional grid power. "I think in the next year maybe, we can get some more electricity and we can start to build out AI data centers," he said. He dismissed pressure to secure tenants immediately: "I am not now very concerned about getting client for the Rockdale."

Asked about the regulatory backdrop following the midterm elections, Wu acknowledged uncertainty but said data centers already running or under construction have a short-term edge. On Norway, where new data center approvals are slowing, Wu said: "Everything will be slowed down in Norway. But I think it's too early to say that the data center will be impossible to build in Norway, because AI is the next industrial revolution."

Potter was direct about the balance sheet, noting cash declined to $163.7 million from $456.8 million at the end of Q2 because the company funded Tydal construction and the Rockdale land purchase ahead of expected financing. "That was a deliberate choice to protect the construction schedule," he said.

Outlook

Bitdeer expects AI cloud revenue to begin at A102 in the first quarter of 2027 and at A201 in the second quarter. The Fox Creek power plant is expected online mid-to-late 2027 as a 100 MW site. The company reaffirmed its commitment to non-dilutive financing, with Potter noting the ATM has not been accessed recently.

"We're not going to tie our hands absolutely, because you don't know what's going to happen in the world," Potter said. "But right now, we're concentrating on executing on our revenue opportunities that we've contracted for that are directly in front of us."

Full 2027 guidance, including AI cloud revenue and capital expenditure targets, will be provided with fourth-quarter results.

Earnings Call Transcript

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