Key Takeaways
- BTDR stock plummets 19.23% following a Q2 net loss that expanded to $92.3 million.
- Second-quarter revenue increased 47% year-over-year to reach $228.8 million.
- Bitcoin production totaled 2,694 BTC while managed hash rate exceeded 86.1 EH/s.
- Adjusted EBITDA improved to $31.1 million amid escalating operational expenses.
- Company advances AI cloud infrastructure while total debt hits $1.8 billion.
Shares of Bitdeer Technologies Group (BTDR) plunged 19.23% to close at $8.79 following the release of second-quarter earnings that revealed a significantly widened loss. While the company achieved impressive 47% year-over-year revenue growth, escalating mining expenses and operational costs overwhelmed the top-line gains. The firm simultaneously scaled up Bitcoin mining production and AI cloud infrastructure, all while managing an increased debt burden.
Bitdeer Technologies Group, BTDR
Strong Revenue Performance Overshadowed By Mounting Losses
Bitdeer delivered second-quarter revenue totaling $228.8 million, marking a substantial rise from the $155.6 million recorded in the comparable period last year. Self-mining operations generated $168.4 million, propelled by a significant expansion in operational hash rate capacity. Co-mining services contributed $25.0 million to the total, while AI Cloud operations brought in $14.0 million.
Despite the revenue success, the cost of revenue surged to $237.3 million from $143.6 million in the prior-year quarter. This resulted in a gross loss of $8.5 million, a stark reversal from the $12.0 million gross profit achieved twelve months earlier. Gross margin deteriorated sharply to negative 3.7% from a positive 7.7%.
The quarter concluded with a net loss of $92.3 million, substantially larger than the $62.9 million deficit reported previously. While adjusted EBITDA showed improvement, climbing to $31.1 million from just $4.6 million, the company faced substantial headwinds from rising energy costs, depreciation charges, operating expenses, and interest obligations.
Bitcoin Mining Operations Scale Rapidly Alongside Cost Increases
Bitdeer grew its total managed hash rate dramatically to 86.1 EH/s, more than doubling from 30.6 EH/s year-over-year. Self-mining capacity now stands at 73.0 EH/s, complemented by 15.9 EH/s in co-mining operations. During the quarter, the company successfully mined 2,694 Bitcoin, a massive increase from the 565 Bitcoin produced in the same period last year.
The total number of mining rigs under management expanded to 289,000 units from 200,000 in the prior-year quarter. Operational efficiency also improved, with average miner efficiency advancing to 15.8 joules per terahash from 25.7 joules per terahash. Average electricity costs edged slightly higher to $44 per megawatt-hour compared to $43.
This substantial fleet expansion drove significant increases in electricity consumption and depreciation expenses throughout Bitdeer’s mining network. Research and development expenditures climbed to $36.1 million from $20.6 million, while general and administrative costs grew to $34.3 million, reflecting increased personnel and consulting requirements.
AI Cloud Buildout Continues As Balance Sheet Debt Grows
Bitdeer maintained its aggressive expansion of AI and high-performance computing capabilities across multiple global locations. The company’s worldwide electrical capacity now totals 2,980.2 megawatts, with 1,752 megawatts already operational. Active development continues at facilities in Norway, Ohio, Texas, Canada, Malaysia, and Bhutan.
The Norwegian Tydal facility represents a cornerstone of Bitdeer’s AI infrastructure roadmap. The first phase is scheduled to commence operations in Q4 2026, with the second phase expected to launch in early 2027. Future capacity expansions at Tydal will accommodate the company’s growing AI and high-performance computing ambitions.
Bitdeer closed the quarter with $496.3 million in combined cash, cash equivalents, and restricted cash. Digital assets and associated receivables amounted to $196.9 million, while total borrowings climbed to $1.8 billion. The company transitioned to U.S. GAAP reporting standards effective January 2026, with historical periods restated for consistency.
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