Bitdeer Technologies Group Q2 FY2026 earnings call

Strategic Milestone

• Executed a 16-year co-location lease and services agreement with Volta at the TETL campus in Norway, officially launching AI infrastructure co-location as a fourth core business pillar alongside AI cloud, Bitcoin mining, and ASIC development and manufacturing.
• The agreement delivers 121 IT megawatts (with 133 growth megawatts) configured for NVIDIA GPUs, generating $4.7 billion in contracted base revenue over the initial 16-year term (rising to ~$8 billion over 24 years if the 8-year renewal is exercised). Volta's obligations are backed by an institutional grade credit structure, reducing counterparty risk and enabling attractive project-level debt financing.
• Remaining capital expenditure for the project is ~$500 million, which is far more capital efficient than a typical greenfield build. Delivery is split into two equal phases, targeted for December 31, 2026 (phase 1) and March 31, 2027 (phase 2).

Infrastructure Portfolio Expansion

• Total global electrical capacity stood at ~3 gigawatts at the end of Q2, up ~12% YoY. The company continues to evaluate new expansion sites globally, focused on acquiring, building, and converting powered infrastructure.
• Key site updates:
  • 174 megawatts already online for mining at the Massillon, Ohio site; reconstruction of two fire-damaged buildings is underway, with most costs recovered via insurance, and associated capacity expected to come online in phases in Q3.
  • Broke ground on the 101 megawatt Fox Creek, Alberta (Canada) site, a $155 million investment with an onsite natural gas power plant and closed-loop dry cooling, leveraging Alberta's bring-your-own-generation framework that allows workload curtailment and power sales back to the grid.
  • Signed a new 10-year lease for 21.7 IT megawatts of AI capacity in Malaysia, with handover expected in Q1 2027.
• The company's model enables repurposing existing power assets: capacity is used for crypto mining until it is converted to AI/co-location, keeping power assets productive at all times.

Capital Structure Updates

• Raised $457 million via the at-the-market (ATM) equity program in Q2, ending the quarter with ~$496 million in cash, cash equivalents, and restricted cash. Long-term debt was reduced by ~$78 million sequentially to ~$1.8 billion.
• Filed a new automatic shelf registration as a well-known seasoned issuer, and upsized the existing ATM program to $1 billion. The company prioritizes non-dilutive project-level debt financing over equity issuance for contracted cash flow projects.

Product & Operational Updates

• Vertically integrated ASIC manufacturing provides a structural cost advantage, with no third-party markups for rigs deployed in the company's own mining fleet, lowering overall costs per exahash.

1. Bitcoin Mining: Self-mining hash rate reached 73 exahash per second (up 342% YoY) with 243,000 active self-mining rigs (up 113% YoY). Total Q2 Bitcoin production was 2,694 BTC (up 377% YoY). Co-mining hash rate grew over 260% sequentially.
2. AI Cloud: Annual recurring revenue reached ~$76 million at the end of Q2 (up 77% QoQ), with 95% utilization across 4,248 deployed GPUs. Contributed $14 million in Q2 revenue, an increase of ~284% sequentially.
3. AI Infrastructure Co-location: The newly launched segment recorded a 16-year contracted base revenue of $4.7 billion from the TETL Norway lease with Volta, with no revenue recognized in Q2 from this agreement.
4. ASIC Development & Manufacturing: Commercial launch of the A4 ultra-hydro SealMiner (9.45 joules per terahash at the chip level) and the DL1 Hydro (first Script algorithm mining machine). Groundbreaking for the 10,000 units per month U.S. manufacturing facility in Sparks, Nevada, expected to be completed by the end of 2026.

Total company Q2 2026 revenue was ~$228.8 million, up 47% YoY and 21% QoQ. Adjusted EBITDA was ~$31.1 million, up 575% YoY and 116% QoQ.

• Full-year crypto mining infrastructure capital expenditures guidance is revised upward to $200 million to $280 million, driven by new additional infrastructure development opportunities in North America. This guidance excludes capital expenditure for SealMiner hardware, GPUs, AI cloud, and co-location development.
• General and administrative expense run rate in the second half of 2026 is expected to increase, reflecting incremental headcount and infrastructure needed to support the growing co-location and AI cloud businesses alongside core mining and ASIC manufacturing operations.
• Steady Bitcoin hash rate growth is expected in the second half of 2026, consistent with the pace of deployment seen over the past several quarters, with no material acceleration planned.

• Execution risk remains the primary near-term constraint on expanding AI co-location and cloud business; the company's current top priority is successful on-schedule completion of the TETL Norway project to build market credibility.
• The Texas state pause on new data center grid interconnections may impact future co-location development in the state; the full impact cannot yet be assessed as formal regulatory criteria for the pause have not been released. The company's existing Rockdale, Texas project is pre-pause and not impacted by the new policy to date.
• A pending lawsuit related to the Clarington site is currently in the discovery phase, after the court denied the company's motion to dismiss. The company continues to believe the lawsuit lacks merit.
• Power price volatility remains a risk for core mining operations, though pass-through electricity cost structures in co-location agreements eliminate this risk for that business segment.

Q: How are non-U.S. co-location and AI capacity opportunities progressing, particularly near-term timelines for available megawatts? / A: The most advanced near-term non-U.S. opportunity is the already-signed Malaysia AI data center, which has strong multi-year, high-margin customer demand. The company is currently focused on executing this project, with capacity expected to come online in Q1 2027. The company reserved ~15 megawatts for its own AI cloud use in Norway, expected to be activated next year, and is actively evaluating additional European co-location expansion opportunities, but no deals are finalized yet. Execution of the existing TETL Norway project is the immediate priority to build market credibility for future deals.

Q: Why did Volta lease only 133 gross megawatts of the 180 total megawatts at TETL Norway, and what is the strategy for the remaining 47 megawatts? / A: The company retained 47 megawatts of gross capacity for its own use, to pursue either additional co-location deals or internal AI cloud expansion, as the Norway market has strong ongoing demand for AI compute. Volta has expressed interest in expanding into the retained capacity, and the company will consider this option alongside other potential tenants. No final deployment decisions have been made, and further activity will follow completion of the Malaysia project execution.

Q: How does the company allocate capital between co-location leasing and building out its own AI cloud business? Is there a preferred model? / A: The company intends to remain flexible, and will pursue both co-location and internal AI cloud opportunities based on what delivers the best value for shareholders. There is no exclusive focus on one model over the other. The company's core advantage is its large portfolio of pre-developed powered land, which can be adapted to either use case as market opportunities arise.

Q: What is the current strategy for external sales of SealMiner rigs, and how should investors model this segment going forward? / A: All existing wafer inventory for SealMiners has been designated for internal use for self-mining and co-mining. Deploying rigs internally generates higher returns in the current hash rate environment, and also allows the company to generate cash from early-stage power assets that are not yet developed for AI use, preventing utilities from reallocating unused power capacity away from the company's sites. This flexibility demonstrates the strength of the company's vertically integrated model.