Bitdeer's Record Revenue Came With a $125.5 Million Loss

Bitdeer Technologies Group reported record third-quarter revenue of $320.7 million on Tuesday, up 89 percent from a year earlier.

Bitdeer Technologies Group (NASDAQ: BTDR), the Singapore-based Bitcoin miner and AI cloud operator, announced the results on Tuesday. The quarter ended September 30, 2026.

Revenue was $320.7 million, up from $169.7 million in the third quarter of 2025. It also rose 40 percent from $228.8 million in the second quarter.

The record came with a much thinner margin. Gross profit fell to $10.8 million from $39.7 million a year earlier.

Gross margin, the share of revenue left after direct costs, was 3.4 percent. It was 23.4 percent a year earlier.

Total cost of revenues more than doubled to $309.9 million, from $130.0 million. Electricity and depreciation rose as the expanded fleet used more power and new rigs entered service, the company said.

Self-mining carried the top line

Self-mining revenue rose to $217.5 million from $130.9 million. Average self-mining hashrate, the computing power pointed at Bitcoin, rose 173.5 percent to 79.6 exahashes per second.

Co-mining, mining run in third-party data centers, added $59.9 million of revenue. The company mined 3,855 bitcoin across its self-mining and co-mining operations, up 248 percent from 1,109.

Total proprietary hashrate reached 86.4 exahashes per second, up from 35.0. A lower average Bitcoin price partly offset the larger fleet, the company said.

The loss widened despite record sales

Net loss widened to $125.5 million from $30.1 million. The loss included a $54.6 million non-cash charge from the change in fair value of the digital assets loan.

That loan is a Bitcoin-collateralized borrowing from a related party. Its value moves with the Bitcoin price, the company said.

Bitdeer lost $0.46 a share, on both a basic and diluted basis. A year earlier the loss was $0.14 a share, on figures recast to U.S. accounting standards.

Adjusted loss, a non-GAAP measure that strips out fair-value swings and share-based pay, was $87.3 million. It was $33.4 million a year earlier.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA, non-GAAP) rose 173 percent to $69.6 million. It was $25.5 million a year earlier.

Revenue cleared the settled estimate

Revenue of $320.7 million beat the Zacks Consensus Estimate of $247.15 million by 29.78 percent, Zacks reported.

Self-mining revenue of $217.5 million also beat the two-analyst average estimate of $192.03 million, Zacks reported. AI Cloud revenue of $20.4 million fell just short of the $21.26 million average estimate.

AI cloud is still small, but the backlog is not

AI Cloud revenue rose to $20.4 million from $1.8 million a year earlier. That is more than eleven times the year-earlier level, a TickerGrove calculation.

The AI Cloud revenue backlog, expected revenue under signed customer commitments, grew to approximately $2.9 billion as of September 30, 2026. The backlog is not a U.S. GAAP measure, the company noted. Its timing and amount depend on data centers energizing, graphics processors deploying and customers performing.

"Our priorities are clear: deliver Tydal, complete our financings and bring Malaysia online," Chief Financial Officer Michael G. Potter said.

At Tydal in Norway, a $4.7 billion, 16-year lease covers 121 IT megawatts configured for NVIDIA graphics processors. The tenant may end the lease without a fee at year 10.

Two Malaysia sites carry more than $2.5 billion of expected revenue under signed commitments, a TickerGrove calculation from the site disclosures. One Cyberjaya site is fully contracted for more than $800 million over five years.

Bitcoin funded the build-out

Bitdeer held 47 bitcoin at quarter-end, down from 2,029 a year earlier. The held count includes coins pledged as collateral, the company said.

Sales of digital assets, primarily mined bitcoin, brought in $221.5 million during the quarter. Capital spending was $478.0 million, including about $368 million for data centers and graphics processors.

Operating cash flow was $6.0 million, helped by a $263.8 million rise in deferred revenue. The rise came mainly from customer advance payments for AI Cloud services.

Cash, cash equivalents and restricted cash were $213.7 million at September 30. Borrowings were $1.95 billion.

What remains unknown

What remains unknown starts with the AI financings. Bitdeer says customer prepayments and project financing are designed to fund contracted capacity, but the financings are not complete.

Whether Tydal and the Malaysia sites energize on their stated dates is also unknown. So is whether gross margin recovers as AI revenue grows.

The build-out now has dates to meet

What to watch: Tydal phase 1, due in the fourth quarter, and the first Malaysia sites due in early 2027. Watch also gross margin against the third quarter's 3.4 percent and the pace of bitcoin sales.