BTDR — Bitdeer Technologies Group

Summary of Bitdeer Technologies Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $188.9 million, a 170% increase year-over-year but a decline from $224.8 million in Q4 2025 due to lower Bitcoin prices and increased internal deployment of mining rigs.
• Adjusted EBITDA: $14.4 million, up approximately $60 million year-over-year, but down from $24.3 million in the previous quarter.
• Operating Loss: $159.5 million, with earnings per share at negative $0.68.
• Cash Position: $298 million in cash and equivalents at quarter-end, an increase from $178 million at year-end 2025.
• Total Borrowings: Approximately $1.92 billion.

2. Strategic Updates and Business Highlights

• Bitcoin Mining: Production grew nearly 500% year-over-year, with a self-mining hash rate increasing from 55.2 EH/s to 65 EH/s.
• AI Cloud Revenue: Grew significantly, with annual recurring revenue reaching approximately $69 million by April 2026, up from $10 million in January.
• New Product Launch: The SEALMINER A4 series launched, featuring high-efficiency mining rigs.
• Infrastructure Development: Progress on Tydal Norway facility conversion into an AI data center, with a lease tenant in advanced negotiations. Other sites in Clarington, Ohio, and Rockdale, Texas, are also under development.
• Colocation Strategy: Focus on securing long-term contracts with high-credit tenants for AI data centers.

3. Forward Guidance and Outlook

• Capital Expenditures: Guidance for total infrastructure CapEx in 2026 is between $180 million and $200 million, excluding AI and colocation development.
• Hash Rate Growth: Continued growth expected but at a more moderate pace compared to previous quarters.
• Margin Recovery: Anticipated through A4 deployment, normalization of power costs, and scaling AI cloud revenue.

4. Bad News, Challenges, or Points of Concern

• Gross Profit: Reported a negative gross profit of $39 million, with a gross margin of negative 20.7%, largely due to low Bitcoin prices, high depreciation expenses from fleet expansion, and seasonal power costs.
• Litigation Issues: Ongoing litigation at the Clarington site could impact construction timelines.
• Market Conditions: The company is navigating a challenging environment with lower Bitcoin prices affecting revenue and profitability.

5. Notable Q&A Insights

• Tydal Facility: Management is in advanced discussions for a lease agreement, focusing on meeting tenant specifications while ensuring sound credit quality.
• Rockdale Development: High demand for AI colocation opportunities, but development timelines remain uncertain.
• AI Cloud Business: Strong demand for GPUs, with most contracts transitioning to long-term agreements, providing revenue stability.
• Sales Strategy: The company is prioritizing self-mining over external sales of mining rigs due to current market conditions.

Overall, Bitdeer Technologies reported strong growth in revenue and operational advancements in its strategic initiatives, particularly in AI cloud services, despite facing challenges related to profitability and ongoing litigation. The company remains optimistic about future growth and margin recovery.