Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Executed a $4.7 billion 16-year colocation lease with Volta at Tydal, Norway, securing long-term contracted revenue and establishing AI infrastructure colocation as a core business pillar.
- Self-mining hash rate surged 342% year-over-year to 73 EH/s, with Q2 Bitcoin production up 377% to 2,694 BTC.
- AI cloud business scaled rapidly, with annual recurring revenue up 77% quarter-over-quarter to $76 million and 95% GPU utilization.
- Vertically integrated SEALMINER platform provides a structural cost advantage, with the A4 Ultra Hydro achieving 9.45 J/TH efficiency and internal deployment avoiding third-party markups.
- Strong balance sheet with $496 million in cash and a $1 billion ATM program, positioning the company to fund growth and pursue non-dilutive project-level debt financing.
Negative Points
- Gross margin remained negative at -3.7%, reflecting ongoing hash price pressure and depreciation from fleet expansion.
- Operating loss widened to $101.7 million, with a net loss per share of $0.37.
- Tydal lease carries execution risk, with $500 million in remaining capex and tight delivery timelines (Phase 1 by Dec 2026, Phase 2 by Mar 2027).
- Counterparty risk remains despite anticipated credit enhancement, as Volta's obligations are not yet fully backed by institutional-grade credit.
- Legal overhang from the Clarington lawsuit, with a motion to dismiss denied and the case moving to discovery, creating potential uncertainty.
Q & A Highlights
Q: Can you provide more details on the Tydal lease agreement, specifically the total power capacity, the amount leased to Volta, and the strategy for the remaining capacity?
A: Haris Basit, Chief Strategy Officer, explained that the Tydal site has a total of 180 gross megawatts. Of that, 133 gross megawatts (121 IT megawatts) are leased to Volta under the 16-year agreement. Bitdeer is retaining 47 gross megawatts for its own AI cloud use, which represents significant potential upside. The company has not made final decisions on how that retained capacity will be deployed, but it is actively evaluating options.
Q: How should we think about the credit guarantee structure for the Tydal lease, and what makes it unique compared to other deals in the industry?
A: Haris Basit, Chief Strategy Officer, noted that the letter of credit structure is innovative for the industry because it provides credit backing from an entity other than a chip vendor or hyperscaler. This opens up additional funding opportunities and is expected to come from highly rated banks. Bitdeer believes this structure will catch on across the industry as it reduces counterparty risk and improves the financeable quality of contracted cash flows.
Q: What is the timeline and what tasks remain for the Tydal project to reach the ready-for-service (RFS) dates for Phases 1 and 2?
A: Haris Basit, Chief Strategy Officer, confirmed that all long lead-time items have been ordered and are scheduled to arrive before the respective RFS dates. The company is in the installation and commissioning phase, with approximately 100 people on site. An engineering analysis indicates the project is on track to hit the target dates of December 31, 2026, for Phase 1 and March 31, 2027, for Phase 2, with no specific critical items that could cause delays.
Q: Can you provide an update on the pipeline for AI/HPC colocation opportunities outside the US, particularly in Asia and Europe?
A: Jihan Wu, CEO, stated that the near-term focus is on Malaysia, where a new data center lease has been signed and customer demand is strong. Norway will follow with the retained 47 megawatts expected to be deployed next year. The company is actively looking at other power asset opportunities in Europe but is prioritizing execution at Tydal to build credibility. US sites in Tennessee and Washington are also being activated for AI/HPC use.
Q: What drove the redesign of the Knoxville, Tennessee site, and how does it impact the project timeline?
A: Michael Potter, CFO, explained that market demand favored a single, larger monolithic data hall complex rather than two separate smaller sites. The redesign consolidated the project into one data hall complex to better align with potential customer requirements. Jihan Wu added that the revised timeline aligns with the original Phase II expectations, with the main change being the elimination of early Phase I activation.
Q: How should investors model SEALMINER rig deployments and external sales going forward?
A: Haris Basit, Chief Strategy Officer, stated that the existing wafer inventory has been designated for internal use due to the challenging hash price environment and the desire to expand self-mining and co-mining operations. The company has the capacity to deploy these rigs internally, which generates cash and secures power assets. This flexibility allows Bitdeer to quickly deploy crypto mining on newly acquired land to keep power active and productive.
Q: What is the company's capital allocation strategy between colocation leases and building out its own AI cloud business?
A: Haris Basit, Chief Strategy Officer, indicated that Bitdeer remains flexible and will evaluate each opportunity on its merits. The company will consider both colocation deals and owning GPUs to serve customers directly. Jihan Wu added that for GPU deals, the company must consider financing and deployment technicalities together, and the immediate focus is on executing the Malaysia capacity before moving to the retained 47 megawatts in Norway.
Q: Can you provide details on the new 21.7-megawatt data center lease in Malaysia, including cost, financing, and expected revenue?
A: Haris Basit, Chief Strategy Officer, said it is too early to provide specific forecasts, but several customers have expressed interest. GPU financing will depend on the contract structure, and with a quality customer backstopping GPU usage, financing is typically more straightforward. The handover is expected in the first quarter of 2027, and the site is designed to support 128 NVIDIA GB300 NVL72 systems.
Q: What are the next steps for the Rockdale and Clarington sites?
A: Haris Basit, Chief Strategy Officer, stated that Rockdale is continuing power infrastructure buildout per the previously discussed timeline, with preparations underway for a potential AI data center. Clarington is being developed for crypto mining with power coming online soon. Regarding the Clarington lawsuit, the motion to dismiss was denied, which is common in pretrial proceedings, and the case has moved into discovery. The company continues to believe the lawsuit lacks merit.
Q: What are you seeing in terms of contract term lengths for new GPU cloud contracts, and how has that changed recently?
A: Haris Basit, Chief Strategy Officer, stated that discussions with customers are focused on long-term contracts of around five years. The company is not spending much time on shorter-term contracts, and its expansion will be supported by these long-term agreements, which provide revenue stability and predictability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
