Bitdeer Technologies Group Q1 FY2026 earnings call

Infrastructure Development Progress

• As of end-Q1 2026, Bitdeer has 1.7 gigawatts of online electrical capacity and a total 3 gigawatt global power pipeline, one of the largest suitable power portfolios among public peers in the sector, with access to low-cost renewable energy.
• The company is pursuing a tiered commercial strategy: prioritize co-location arrangements for large sites suited to hyperscale/neocloud/enterprise customers, and pursue AI cloud opportunities at smaller facilities on a contract-backed basis.
• Highest priority project: TETL Norway 180 megawatt AI co-location conversion. A construction contract has been signed, decommissioning of legacy mining rigs is underway, most long-lead equipment orders are placed, and first phase completion is targeted for December 2026. The facility follows NVIDIA reference design for latest AI chips, with 100% renewable power and expected remaining CAPEX far below greenfield build costs. The company is in advanced negotiations with a potential creditworthy tenant, and lease signing is the top organizational priority.
• Other key site progress: Design work continues at 570 megawatt Clarington, Ohio (US), where neighboring company litigation may delay construction; 740+ megawatt Rockdale, Texas (US) is pursuing a dual-track strategy of continuing existing Bitcoin mining while developing adjacent AI co-location, with 179 megawatts of incremental power targeted for year-end 2026 energization; Wenatchee, Washington and first phase Knoxville, Tennessee conversion targeted for Q4 2026 completion; Niles, Ohio 300 megawatt site targeted for Q4 2028 energization; ground-breaking planned for June 2026 at 101 megawatt Fox Creek, Alberta, Canada.

Bitcoin Mining and ASIC Updates

• Self-mining hash rate grew from 55.2 EH/s at end-2025 to 65 EH/s at end-Q1 2026, with April 2026 production of 783 Bitcoin showing continued momentum after seasonal Q1 production dips.
• The newly launched A4 series SEAL miners are the most efficient in the industry, with flagship model efficiency of 9.45 joules per terahash. Deployment of these rigs has improved Bitdeer's overall fleet efficiency to 16.4 J/TH, lowering per-hash costs and improving margins.
• Internal ASIC manufacturing preparation continues at the planned Reno, Nevada factory: lease signed, permit applications submitted, with construction expected to start in Q3 2026, supporting the company's vertical integration and supply chain resilience goals.

AI Cloud Business Progress

• The AI cloud business has scaled from pilot to a commercially viable segment with deepening enterprise demand. H100 hourly pricing has increased 40% since late 2025 with no meaningful demand friction, demonstrating strong pricing power.
• Key Q1 2026 milestones: deployed first NVIDIA GB200 NVL72 infrastructure in Malaysia, launched managed Kubernetes service for GPU orchestration, expanded the model studio platform to support over 50 open-source AI models, and showcased solutions at NVIDIA GTC to generate new business opportunities. The company plans to launch U.S.-based AI cloud capacity in 2026, backed by committed customer contracts.

Balance Sheet Update

• Bitdeer successfully priced an upsized $375 million 5% convertible senior notes offering due 2032 in February 2026, ending Q1 with $298 million in total cash, cash equivalents and restricted cash, up from $177.9 million at end-2025.

Bitdeer operates four core business segments: 1) Bitcoin Mining: Self-mining hash rate grew to 65 exahash per second at quarter-end, a 400%+ year-over-year increase. The segment produced 2,034 Bitcoin in Q1 2026, and contributed the majority of Q1 2026 total revenue growth. 2) ASIC Development: The company launched the industry-leading SEAL miner A4 series in Q1 2026. Internal manufacturing capability gives Bitdeer a structural cost advantage over competitors, with no third-party hardware markups for self-deployment. As of Q1-end, almost all A4 output is allocated to internal self-mining deployment rather than external sales. 3) AI Cloud: This segment saw extremely rapid revenue growth in Q1 2026. Annual recurring revenue (ARR) grew from $10 million at end-of-January to $43 million at end-of-Q1, reaching $69 million by late April. GPU utilization climbed from 41% in January to 94% in March, with 2,128 GPUs deployed (1,948 under active external subscription) at quarter-end, growing to over 4,000 GPUs by late April. 4) Co-location Data Center Infrastructure: This segment is in active development, with no material revenue contribution in Q1 2026. Overall consolidated Q1 2026 total revenue was $188.9 million, up 170% year-over-year. Gross profit was negative $39 million (negative 20.7% gross margin), adjusted EBITDA was $14.4 million (up $60 million year-over-year), and operating loss was $159.5 million.

• Full year 2026 capital expenditure guidance for crypto mining data center construction is maintained at $180 million to $200 million. This range excludes CapEx for SEAL miner hardware, GPUs, AI cloud development, and co-location conversion projects.
• Management expects continued Bitcoin mining hash rate growth in 2026, albeit at a more moderate pace than the prior two quarters.
• The global supply-demand imbalance for AI compute capacity is expected to persist well into 2027 and beyond.

• Litigation filed by a neighboring company at the Clarington, Ohio site could impact the timing of construction, creating uncertainty around the project development timeline.
• Reported Q1 2026 GAAP earnings include non-cash volatility from required fair value accounting for digital assets under new U.S. GAAP rules, which can create swings in reported net income that do not reflect core operational performance.
• Lower Bitcoin prices in Q1 2026 and depreciation charges from rapid mining fleet expansion pressured gross margins in the quarter, though management expects these factors to be transitory.
• Seasonal power cost increases at the Norway and Bhutan mining facilities negatively impacted Q1 profitability, though costs are expected to normalize in spring and summer.

Q: For the TETL Norway co-location project, how far along is final design, and what types of tenants is the company targeting? / A: Most of the facility design is already complete, aligned with NVIDIA's standard reference design for AI data centers. Management is only working through minor final adjustments to meet the leading prospective tenant's specifications. The company prioritizes investment-grade creditworthy tenants with strong economic terms for the lease, and expects to be able to announce the signed deal in the near future. The project will support both GB300 and Vera Rubin AI chips, per the prospective tenant's requirements.

Q: What is the current demand outlook and durability of Bitdeer's AI cloud revenue stream, and what is the internal plan for GPU growth in 2026? / A: Demand for AI cloud GPU capacity is extremely strong across all customer segments, with no signs of softening. The 40% H100 price increase was fully absorbed by the market with no friction. Currently, the majority of deployed GPUs are under 3-5 year long-term contracts, which improves revenue visibility and durability. Growth is only limited by how quickly Bitdeer can bring new capacity online.

Q: With most other U.S. public miners pulling back on ASIC purchases, how does this impact Bitdeer's external SEAL miner sales strategy? / A: Bitdeer is not prioritizing external ASIC sales at this time. Due to constrained semiconductor manufacturing capacity and ongoing bearish Bitcoin pricing that would force unattractive low sale prices, almost all current A4 production is allocated to internal self-mining deployment, which is more profitable. The company also has scalable co-mining partnership opportunities with third parties that provide existing data center capacity, which delivers higher returns than external hardware sales.

Q: What are the remaining hurdles to signing the TETL Norway lease, and what can be shared about pricing? / A: There is no single major outstanding issue blocking the lease; all remaining items are small, detailed negotiation points that must be finalized before signing. Pricing is expected to be near the top of current market rates for similar capacity, which management expects will be attractive to investors. The lease signing is the company's highest organizational priority, with significant resources dedicated to closing the deal as quickly as possible.