Bitdeer TechnologiesBTDR

Bitdeer signed a massive 16-year lease for its Norway data center that is expected to bring in about 4.7 billion dollars in revenue. The facility will house powerful chips used for artificial intelligence, known as GPUs, for a leading AI lab.

This is a major win because it proves the company can successfully rent out its infrastructure for high-performance computing. It provides a steady, long-term source of cash that is not tied to the volatile price of Bitcoin, making the business more predictable and valuable.

Source: GlobeNewsWire

Key highlights

• Mining power expanding rapidly: The proprietary mining hashrate, which measures the computer power used to mine Bitcoin, grew to 65.1 EH/s from 11.5 EH/s a year ago. This massive increase in computing power helped the company mine 2,033 Bitcoins this quarter compared to only 350 in the same period last year.
• Fleet efficiency improving: The company improved its fleet efficiency to 16.4 J/TH, which is better than the 29.0 J/TH recorded a year ago. A lower number means the company uses less electricity to generate mining power, which is critical for maintaining profitability as mining costs rise.
• AI cloud business gaining speed: Revenue from the AI cloud business grew to $3.7 million from $1.4 million a year ago, and management noted the annualized run rate has now exceeded $69 million. This segment is a key part of the company's strategy to use its data centers for artificial intelligence work instead of just mining cryptocurrency.
• Expanding global power capacity: Bitdeer now has a total global power portfolio of approximately 3.0 gigawatts, up from 1.7 gigawatts of currently electrical capacity. Securing these large amounts of electricity is the primary hurdle for building the massive data centers needed for both Bitcoin mining and AI computing.
• Data center conversion outlook: Management expects to complete the conversion of several sites to AI data centers by Q4 2026, including the Tydal facility in Norway and the Wenatchee site in Washington. These projects are part of a broader plan to transition 1,744 megawatts of current electrical capacity toward higher value AI and colocation services.

Our take: Bitdeer is successfully scaling its mining power while making real progress in its transition to an AI infrastructure provider. While the net loss widened due to higher depreciation and electricity costs, the jump in annualized AI revenue to $69 million shows the strategy is working. This quarter reinforces the long term case for Bitdeer as a diversified computing power leader.