Bitdeer Technologies Group (BTDR)

BTDR

11/10/2026 Earnings Call

Summary

Bitdeer Technologies Group reported record third-quarter 2026 revenue of $320.7 million, up 89% year-over-year and 40% sequentially, driven by a sharp increase in Bitcoin self-mining and co-mining activity as well as continued growth in AI cloud services. Gross profit turned positive at $10.8 million, a $19.4 million improvement from the prior quarter, yielding a 3.4% gross margin. Adjusted EBITDA more than doubled quarter-over-quarter to $69.6 million, representing a 21.7% margin. Despite the strong top-line growth, the company posted a net loss of $125.5 million, or $0.46 per share, largely due to non-cash items including $125.8 million of depreciation and amortization and a $54.6 million fair value loss on Bitcoin-denominated borrowings as Bitcoin prices rose. Management emphasized that the loss reflects timing-related, non-cash impacts and that operating cash flow plus Bitcoin sales generated roughly $227 million in cash during the quarter.

The performance was powered by a 43% sequential increase in Bitcoin mined to 3,855 BTC, including a record 1,355 BTC in September, and a 140% jump in co-mining revenue to $59.9 million. Self-mining hash rate expanded to approximately 82.3 exahash per second, and fleet efficiency improved to 15.4 joules per terahash from 20.1 a year earlier, helping to keep the power cost per Bitcoin mined at approximately $36,000 despite higher average electricity prices of 4.7 cents per kilowatt hour. AI cloud revenue reached $20.4 million, more than 11 times the year-ago level, with 4,328 GPUs deployed at roughly 95% utilization and an annualized run-rate of approximately $86 million. The segment generated $3.1 million of gross profit, a significant turnaround from losses in prior periods.

The company highlighted a rapidly expanding contracted revenue backlog. AI cloud backlog now stands at approximately $2.9 billion, including over $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. Together with the approximately $4.7 billion base-term lease value for the Tydal HPC project in Norway, total expected contracted revenue across the AI platform is approximately $7.6 billion. Bitdeer also added several new AI cloud sites, bringing secured AI cloud data center capacity to roughly 332 IT megawatts, about 95% of its 350 MW target for the first quarter of 2028. Management noted that signed AI cloud contracts plus opportunities under negotiation now exceed $10 billion in combined value.

Looking ahead, Bitdeer reaffirmed that Tydal phase one remains on schedule for delivery by year-end 2026, with customer installations beginning in January and phase two deliveries expected at the end of the first quarter of 2027. The company expects AI cloud revenue to begin at A102 in the first quarter of 2027 and at A201 in the second quarter. Management guided 2026 crypto mining infrastructure capital expenditures to at or below $200 million, the low end of its prior $200 million-$280 million range, and said it will provide full 2027 guidance, including AI cloud revenue and capex targets, with its fourth-quarter results. Remaining Tydal capex of approximately $250 million will be spread across phase one and phase two and extend into 2027.

Investors focused on financing strategy and execution risks. Management stressed a disciplined funding plan that matches each major use with a dedicated source: project-level financing secured by contracted rent for Tydal, customer prepayments covering 50% or more of GPU deployments, and operating cash flow from Bitcoin mining. The company is in the final stages of GPU financing for A102 and is working on similar financing for A201. While acknowledging tighter credit markets for AI infrastructure and increased volatility in Bitcoin prices, management expressed confidence that its power-first strategy, existing energized sites, and long-term contracts provide a durable foundation for growth. Key risks include regulatory and permitting uncertainty in the U.S. following midterm elections, potential slowdowns in Norway data center approvals, and the need to close project financings amid a more cautious lending environment.

Operations Data

Financial Performance

  • Revenue: $320.7 million, up 89% YoY and 40% QoQ. Sequential growth driven by self-mining (+$49 million), co-mining (+$35 million), and AI cloud (+$6 million).
  • Gross profit: $10.8 million, a $19.4 million improvement from Q2 2026. Gross margin of 3.4%.
  • Operating expenses: G&A $32.8 million (down from $34.3 million in Q2); R&D $28.2 million (down from $36.1 million, which included a one-time development expense); Selling expense $4.2 million (up from $2.2 million due to higher advertising and marketing).
  • Net loss: $125.5 million, or $0.46 per share, reflecting non-cash items including $125.8 million of depreciation and amortization and a $54.6 million fair value loss on Bitcoin-denominated borrowings, partially offset by a fair value gain on the Norway power purchase agreement.
  • Adjusted EBITDA: $69.6 million, up 173% YoY and 124% QoQ. Adjusted EBITDA margin of 21.7%.
  • Cash and liquidity: Cash and cash equivalents of $163.7 million; restricted cash of $50 million. Digital assets of approximately $43 million; digital assets receivables of about $344 million (mainly collateral for Bitcoin-denominated borrowings).
  • Capital expenditures: $478 million in Q3, including approximately $288 million for data center construction and land (including Tydal and Rockdale land purchase) and approximately $110 million for SEALMINER production.
  • Debt: Total debt of $1.95 billion, up approximately $107 million from Q2, reflecting additional Bitcoin-denominated borrowings from BIT Group and higher Bitcoin prices. Convertible notes total $1.2 billion in principal with coupons of 4%-5.25%, none maturing before December 2029.

Business/Product Analysis

AI Platform

  • AI Cloud Services: Revenue of $20.4 million, up 46% QoQ and more than 11x YoY. Deployed GPU count roughly flat QoQ at 4,328 GPUs, with utilization of approximately 95%. Sequential growth driven by pricing and mix, particularly higher utilization of GB-class systems. AI cloud ARR of approximately $86 million at quarter-end. Gross profit of $3.1 million (15% gross margin), compared with gross losses of $2.3 million in Q2 2026 and $0.8 million in Q3 2025.
  • Contracted Backlog: AI cloud backlog of approximately $2.9 billion. A102 (9.5 MW) sold out ahead of energization; five-year commitments represent more than $800 million in expected revenue. A201 (21.7 MW) more than 70% contracted; commitments represent more than $1.7 billion over five years. Average revenue per megawatt per year: approximately $17 million for A102 and more than $21 million for A201. Once fully deployed, both sites represent more than $500 million in annualized revenue.
  • Capacity Expansion: Secured AI cloud data center capacity now approximately 332 IT megawatts, about 95% of the 350 IT megawatt target for Q1 2028. New sites include A202 (65.1 MW, Johor campus, 10-year agreement, energization expected Q3 2027), A901 (67 MW, expected ready for service Q2 2027), and A103 (60 MW Vera Rubin-ready facility at Cyberjaya, 8-year agreement, energization expected Q1 2028).
  • HPC Infrastructure (Tydal): 16-year lease with Volta for 121 IT megawatts (133 gross megawatts). Base term value of approximately $4.7 billion; approximately $8 billion if the 8-year renewal option is exercised. Average annual revenue over base term of approximately $293 million, with expected NOI margin of about 90% (approximately $264 million average annual NOI). Phase one delivery on schedule for year-end 2026; customer installations planned for January. Phase two data hall deliveries expected at end of Q1 2027. Rent payments for first eight years expected to be backed by dedicated credit support, including approximately $1.3 billion of irrevocable letters of credit for years one to six from two highly rated global financial institutions.

Crypto Platform

  • Self-Mining: Mined 3,855 Bitcoin in Q3, up 43% QoQ. September was a record month at 1,355 Bitcoin. Self-mining hash rate reached approximately 82.3 exahash per second at quarter-end. Power cost per Bitcoin mined of approximately $36,000, in line with Q2 despite higher average power prices, and down from $49,000 a year ago. Fleet efficiency improved to 15.4 J/TH from 20.1 J/TH a year ago.
  • Co-Mining: Revenue of $59.9 million, up 140% QoQ. Co-mining hash rate of 28.7 exahash per second.
  • ASIC Design: A4 Ultra Hydro operates at 9.45 J/TH at the mining rig level. SEALMINER continues to be deployed across own facilities and co-mining partner sites.

Regional Performance

  • Malaysia: Major growth hub for AI cloud; A102 sold out, A201 more than 70% contracted. New sites A202, A901, and A103 added. Revenue expected to begin at A102 in Q1 2027 and A201 in Q2 2027.
  • Norway: Tydal HPC conversion progressing on schedule. Grid power and much of the electrical infrastructure already in place, reducing interconnection risk. Site workforce exceeds 300, working two shifts.
  • United States: All 221 MW at Massillon now online. Rockdale land acquisition completed for AI transition; additional grid power being sought. Weathersfield, Ohio site (40 acres, potential 300 MW) requires local community approvals. Clarington site currently planned for Bitcoin mining; Fox Creek power plant expected online mid-to-late 2027.

Key Metrics

  • Total power portfolio: Approximately 3.1 GW of global power capacity, with about 1.75 GW online.
  • Deferred revenue: Approximately $342 million at quarter-end, mostly AI cloud prepayments, funding 50% or more of related GPU deployments.
  • Operating cash flow: Approximately $6 million, including customer prepayments but excluding $221.5 million of mined Bitcoin sold (reported in investing activities). Combined with Bitcoin sales, generated roughly $227 million of cash during the quarter.
  • ATM equity raise: $58 million in Q3, down from $457 million in Q2.

Outlook

Official Company Guidance:

  • 2026 Crypto Mining Infrastructure CapEx: Now expected at or below $200 million, the low end of the prior range of $200 million-$280 million. This guidance excludes spending on SEALMINER hardware, GPUs, AI cloud, and HPC infrastructure development.
  • Tydal Remaining CapEx: Approximately $250 million remaining for the Volta lease, to be spread across phase one and phase two delivery, extending into 2027.
  • 2027 Guidance: The company will provide 2027 capital expenditure and AI cloud revenue guidance with its fourth-quarter 2026 earnings release.
  • Tydal Phase One: On schedule for delivery by year-end 2026; customer installations planned to begin in January 2027.
  • Tydal Phase Two: Data hall deliveries expected to begin at the end of Q1 2027.
  • AI Cloud Revenue Start: A102 expected to begin generating revenue in Q1 2027; A201 in Q2 2027.
  • Fox Creek: 100 MW site expected online mid-to-late 2027.

Management Qualitative Commentary:

  • Mining hash rate expected to continue growing over time, subject to normal seasonal curtailment.
  • The company plans to slow the pace of new capital investment in crypto mining in 2027 while continuing to expand mining operations.
  • Financing strategy prioritizes non-dilutive project-level financing secured by contracted cash flows, customer prepayments, and asset-level debt. The company is in the final stages of GPU financing for A102 and is working on similar financing for A201. Tydal project financing process has started.
  • Management intends to limit equity financing to earlier-stage investments and is concentrating on executing contracted revenue opportunities.
  • The company continues to pursue additional grid power at Rockdale and expects "good news in the near future."
  • No plans to sell powered land despite increased value, as management views it as a long-term strategic asset.
  • The company signed the White House Ratepayer Protection Pledge in September, reaffirming commitment to responsible digital infrastructure development.

Q&A Highlights

Q: How are AI cloud prepayments evolving, what percentage of CapEx can they cover, and what is the current customer mix and desired shift toward AI labs vs. hyperscalers? A: Jihan Wu stated prepayments will be about 50% in the near foreseeable future. Pressure for customers to pay more upfront is increasing because capital markets are tightening for neoclouds, meaning competitors cannot do new CapEx without strong client support. Bitdeer sees less meaningful competition willing to accept no prepayment. The company will focus on neolabs and AI startups, which are underserved, while frontiers are somewhat overserved and hyperscaler terms are less profitable.

Q: What is the status of the Rockdale interconnection, are ERCOT approvals required for AI transition, and is more land needed? A: Jihan Wu said the acquired land is sufficient for the AI transition at Rockdale. The company is seeking more grid power, which has been hinted at or promised for some time but is still pending. Management hopes to secure additional electricity next year to begin building AI data centers.

Q: How should investors think about the regulatory and permitting backdrop for converting U.S. mining sites to AI/HPC following the midterm elections, and does having energized sites provide an advantage? A: Jihan Wu expressed some uncertainty post-midterms but expects data center construction will require clearer arrangements with local communities on taxes and contributions. This may raise operating costs but is fair. Data centers already running or under construction enjoy a short-term edge as others slow down.

Q: What is the update on Tydal phase one project financing ahead of year-end delivery, and what are the key milestones for phase two? A: Michael Potter said project financing is advancing. Volta's successful GPU financing removed the last major item needed to activate the letters of credit, with remaining work focused on construction completion and GPU installation. Market conditions for AI financing are tough, but the advanced construction, existing power, and strong LC backstop are advantages. Phase one remains on track for December 31, and phase two is also on track. External due diligence during Volta's GPU financing provided comfort on progress.

Q: How should AI cloud revenues ramp through 2027, and when will Bitdeer achieve the full ~$580 million ARR implied by the $2.9 billion backlog? A: Michael Potter said 2027 guidance will be provided with Q4 2026 earnings. Revenue turns on as different phases energize, with GPUs typically up and running a few months after delivery. More specific guidance will come in the Q4 release.

Q: Will 2027 guidance include both capex and AI cloud revenue? A: Michael Potter confirmed 2027 guidance will be given in Q4.

Q: What is the status of prospective tenant discussions at Rockdale, and how does Bitdeer decide between converting existing mining capacity vs. building new AI data centers? A: Jihan Wu said there is no plan for massive mining shutdowns at Rockdale. The company will use acquired land, seek more grid power, and build new AI data centers incrementally. Pressure to secure customers is low as Bitdeer can build from small and expand flexibly. Focus is on securing new power, with good news expected soon.

Q: Does the financing mix suggest no equity financing in Q4 2026 or Q1 2027? A: Michael Potter said the company will not tie its hands absolutely, but the ATM was wound down at the tail end of Q2 and has not been accessed recently. The plan is to link contracted cash flows to project financing and use customer prepayments plus shorter-term GPU financing. Equity financing will be limited to earlier-stage investments. Current focus is on executing contracted revenue opportunities.

Q: Is the 40-acre Weathersfield, Ohio site sufficient for a 300 MW HPC or cloud data center, or is more land needed? A: Jihan Wu said the land is in the middle of local communities and requires more time to get permission. Other communities have approved data centers with good contribution plans, and Bitdeer intends to pursue similar arrangements. No additional land is needed for a data center on the existing site.

Q: Is Bitdeer considering expanding or subtracting from its global power footprint, including selling powered land given increased value? A: Michael Potter said the company is not looking to sell powered land, as scarcity has increased its value and Bitdeer has long-term growth plans. Bitcoin mining provides good cash flow while waiting for AI data center development. Nothing is absolute, but management is comfortable with the current position.

Q: How do Norway's regulations on new data center construction impact later phases at Tydal and the other Norway site? A: Jihan Wu said everything will slow down in Norway, but it is too early to say data centers will be impossible to build. AI is a fundamental next industrial revolution, and Norway is unlikely to fully keep up. Permitting and approvals are expected to slow.

Q: Can you repeat the $350 million remaining Tydal capex figure and provide a rough range for the financing needed? A: Michael Potter clarified that approximately $500 million is left to spend to complete Tydal construction across phase one and phase two. The company would want to secure at least $500 million in financing and aims to pull out some equity previously invested. The total amount will depend on market conditions, but the plan is to take out more than recent CapEx invested.

Q: Any update on Fox Creek or Clarington? A: Michael Potter said no update on Clarington, which remains in the same status. Bitdeer continues to pursue relief against the lawsuit and plans to use the site for Bitcoin mining. Fox Creek power plant construction continues, with production expected mid-to-late 2027. Gas supplies have been secured and electricity generation made more robust. Fox Creek will be a 100 MW site.

Q: Once scaled, what is the target gross margin and EBITDA margin range for the AI cloud business? A: Michael Potter said financial targets and the model will be discussed in more detail with Q4 results. Reaching scale will happen next year and will be part of 2027 guidance.

Q: How is Bitdeer thinking about SEALMINER production and capital allocation going forward? A: Jihan Wu said the company will continue to invest in expanding mining operations but will slow the pace of new capital investment in 2027.

Q: What infrastructure and rights were transferred in the $100 million Rockdale transaction for 200 acres, including SLR's interconnection rights, water rights, and substation? A: Michael Potter said water rights were not transferred, but an arrangement exists to get water to the site. Bitdeer now controls the interconnection and can transfer power from the existing site to the new site. The substation is shared with SLR under a formal agreement, with Bitdeer having more control than before.

Q: How does Bitdeer view Malaysia's development and its competitive position for underserved AI startups versus the U.S.? A: Jihan Wu said Malaysia expansion is advantageous amid U.S. midterm uncertainty. Bitdeer can grow AI cloud on time without worrying about its own data center construction pace. Most U.S. and Asian tech companies are seeking Malaysia capacity, and Bitdeer's U.S. sales team receives significant inbound demand. U.S. data centers are being built at U.S. speed, so Bitdeer can execute and fulfill demand without concern.

Q: What is the status of TSMC wafer allocation, and how is Bitdeer thinking about Zcash and Scrypt mining? A: Jihan Wu said wafer availability is tighter than before due to strong AI demand. Bitdeer will slow crypto mining CapEx next year. There is no plan for Zcash, as competition is expected to be fierce with many new entrants ordering wafers. Scrypt mining is attractive because revenue per megawatt is higher than Bitcoin mining, and Bitdeer has an edge in mining machines for that algorithm. The company will continue to do more Scrypt mining.

Transcript

ⓘ Content may contain inaccuracies due to audio quality or AI recognition issues. Please refer to the original audio/video.

Good day, and thank you for standing by. Welcome to the Bitdeer Third Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded.

After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

I would now like to hand the conference over to your speaker today, Tesh Dahya, Head of Investor Relations.

Thank you, operator, and good morning, everyone. Welcome to Bitdeer Technologies Group's Third 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, who will provide a high-level review of our strategy.

Michael will then review our operating highlights and third quarter financial results before we open up the lines for questions.

To accompany today's call, we have provided a supplemental investor presentation available on Bitdeer's Investor Relations website under Webcasts and Presentations.

Going forward, our infrastructure metrics previously provided in our monthly production updates will be included in our quarterly earnings release.

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 on forward-looking statements and the risks and uncertainties related to Bitdeer's business and industry, please refer to the company's annual report on Form 20-F and other filings with the U.S.

Securities and Exchange Commission. I also want to note that we will be discussing certain non-GAAP financial measures, including Adjusted EBITDA and adjusted profit or loss, and operating metrics today.

A reconciliation of these measures to the most direct comparable GAAP measures is included in our earnings release issued earlier today.

These measures should not be considered in isolation from or as a substitute for the most directly comparable GAAP measures.

As a reminder, changes in the fair value of our digital assets and certain borrowings are reflected in GAAP net income or loss and may introduce non-cash volatility into our reported results.

A replay of this call will be available on our Investor Relations website shortly after the call concludes. With that, I will now turn the call over to Haris.

Thank you, Tash, and good morning, everyone. The third quarter was an important period in Bitdeer's evolution.

We continued to build a diversified technology and digital infrastructure platform with a growing presence in AI, neocloud services, and high-performance computing infrastructure. The market continues to evolve quickly.

Bitcoin markets remain cyclical, demand for AI compute continues to outpace available supply, while competition for power, infrastructure, and customers is intensifying.

Against this backdrop, our advantage is our ability to develop, control, and monetize power infrastructure. Power is the foundation of our platform, and we aim to deploy it where it generates the greatest long-term economic value.

We do that across two platforms, AI and crypto. Our AI platform spans AI cloud services and HPC infrastructure. In AI cloud, we deploy GPU capacity alongside customer commitments with disciplined utilization and capital investment.