Detailed Narrative
Tydal Colocation Lease Secures Long-Term AI Revenue
Bitdeer announced a significant 16-year colocation lease with Volta at its Tydal campus in Norway, expected to generate $4.7 billion in contracted base term revenue for 121 IT megawatts. The agreement includes a 3% annual escalator and full pass-through of electricity costs, ensuring predictable cash flow and margin protection. This deal is backed by an institutional-grade credit structure, which reduces counterparty risk and supports project-level financing for the remaining $500 million capital expenditure. Delivery is planned in two phases, targeting December 31, 2026, and March 31, 2027, respectively.
Strategic Expansion into AI Infrastructure
The Tydal agreement marks a pivotal step in Bitdeer's strategy to convert its power infrastructure portfolio into long-duration contracted revenue, establishing AI infrastructure colocation as a new business pillar. The company retained 47 gross megawatts at Tydal for its own AI cloud use, exploring further opportunities. Additionally, Bitdeer signed a 10-year lease for 21.7 IT megawatts of capacity in Malaysia, expected online in Q1 2027, designed to support 128 NVIDIA GB300-NVL72 systems, further scaling its AI cloud business.
Robust Bitcoin Mining Operations
Bitdeer's self-mining hash rate reached approximately 73 exahash per second by the end of Q2 FY26, representing a 342% year-over-year increase, supported by 243,000 active rigs. Bitcoin production totaled 2,694 BTC, up 377% YoY. The co-mining hash rate also accelerated significantly, growing over 260% sequentially. The company leverages its internal Sealminer manufacturing capability to deploy rigs into its own fleet, maintaining a structural cost advantage and flexibility to allocate hardware based on market conditions.
Manufacturing and Site Development Initiatives
The company broke ground on a 187,000 square foot Sealminer manufacturing facility in Sparks, Nevada, anticipated to be completed by the end of 2026 and capable of producing 10,000 units annually. At the Massillon, Ohio site, reconstruction of two fire-damaged buildings is underway, with 174 megawatts of capacity expected to be energized in phases during Q3 FY26. Bitdeer also broke ground on its Fox Creek, Alberta site, a $155 million investment including a 101-megawatt natural gas power plant.
Financial Performance and Capital Allocation Strategy
Second quarter revenue grew 47% year-over-year to $228.8 million, driven by mining expansion and a 284% sequential increase in AI cloud contribution to $14 million. Adjusted EBITDA surged 575% YoY to $31.1 million, demonstrating operating leverage. The company ended the quarter with $496 million in cash, benefiting from $457 million in proceeds from an at-the-market equity program. Bitdeer plans to prioritize non-dilutive project-level debt financing for future capital needs, such as the Tydal development, over equity issuance.
Flexibility and Innovation in Power Asset Utilization
Bitdeer's model allows for strategic flexibility, utilizing power assets for crypto mining during the development phase of AI data centers, ensuring productivity and securing utility connections. The company's internal manufacturing of Sealminer rigs provides a cost advantage and the ability to quickly deploy hardware. The institutional-grade credit structure backing the Tydal lease is seen as an innovative approach that could open additional funding opportunities for the industry.