Self-mining revenue reached $168mn, up from $59mn a year earlier. Cost of revenue on that business was $171mn. A line that produced $4mn of gross profit a year ago produced a gross loss instead.
It was not alone. Co-mining and the AI Cloud business also ran gross losses. Of seven reported business lines, only membership hosting contributed anything meaningful, and its revenue is shrinking. Group gross margin was minus 3.7%, against plus 7.7% a year earlier.
Net loss came to $92mn, or $0.37 a share, against $63mn a year earlier. Both that and revenue of $229mn fell short of the Zacks consensus, which had looked for a $0.32 loss on $231mn.
Investors took a while to decide. Bitdeer shares had risen in pre-market trading on Monday before the release, then fell through the day, ending 8.4% below Friday's close by 14:00UTC and 13% off the session high, on BATS hourly data including extended hours.
Why scale made the margin worse
The mechanism is in the company's own explanation. Cost of revenue rose 65% against revenue growth of 47%, driven by electricity and depreciation as new rigs came online. The average self-mining hashrate rose 389% over the year, to 69.5 EH/s, so the machines arrived faster than the revenue they produce.
Depreciation is the part that compounds. Bitdeer charged $108mn of it in the quarter against $22.8mn a year earlier, after moving $613mn of inventory, mostly chips and finished SEALMINER rigs, into fixed assets for its own use. Building its own machines and running them itself converts a one-off sale into a multi-year charge: SEALMINER sales revenue fell to $0.4mn from $70mn because the rigs it used to sell it now deploys.
Fleet efficiency improved to 15.8 J/TH from 25.7 and electricity cost barely moved, at $44 per MWh against $43. The fleet is better, and the power is no more expensive. The margin went negative anyway because bitcoin prices fell, and the depreciation arrived regardless. Bitdeer said its GAAP results reflect non-cash depreciation from an expanding fleet and that its underlying cash margins remain healthy. It did not provide a figure, and the business consumed cash during the quarter.
The first quarter was worse. The gross loss narrowed from $39mn to $8.5mn, a fall of 78%, while the net loss fell 42%, from $160mn to $92mn. Bitdeer describes the gross improvement as a $31mn sequential recovery. CFO Michael Potter attributed it to the operating leverage of a vertically integrated model and then named the drivers: fleet efficiency, and seasonal power costs falling about 15%. Half of it was the weather. Over six months the net loss still reached $252mn against a $42mn profit a year earlier.
What the Norway lease actually fixes
Against that, the Tydal agreement announced on 4 Aug reads less like diversification than a solution.
Bitdeer's subsidiary signed a 16-year lease with Volta Tydal AS, a subsidiary of Volta and an Nvidia Cloud Partner, delivering 121 IT MW. Volta's own customer at the site is an unnamed leading AI lab, with Dell Technologies as technology provider. Contracted revenue is roughly $4.7bn over the base term, rising to about $8bn over 24 years if a one-time extension is exercised.
The structure is what matters. Volta pays rent with a 3% annual escalator and reimburses electricity costs in full. Mining exposes Bitdeer to the Bitcoin price on the revenue side and to power on the cost side. This removes both.
Two caveats sit alongside it, neither in the announcement. The tenant can terminate at the end of year 10, which makes a 16-year contract a different asset to borrow against. And a credit backstop of roughly $1.3bn in letters of credit from affiliates of J.P. Morgan and another institution is, in the company's words, anticipated rather than in place.
Bitdeer told Sandmark it does not "anticipate any meaningful impact vs. the expected debt financing objectives we are considering," and that the backstop is "arranged by two top-tier global financial institutions and is subject to customary conditions." It did not say whether lenders apply a discount to a 16-year term with a break at ten, and did not name the second institution.
Potter, on his first call as CFO, told analysts mining lets the company use capacity until an AI data centre is ready, "ensuring our power assets remain productive and secured." On the quarter's numbers, productive is doing a lot of work in that sentence. Bitdeer is also keeping 47 of about 180 gross MW at Tydal for its own AI Cloud business, making it both landlord and competitor to its tenant, and still needs about $500mn to finish the site, which it intends to raise by borrowing against the lease rather than issuing shares.
The pipeline is converting, not coexisting
Bitdeer's own site table complicates any reading in which mining and AI sit comfortably together. At Wenatchee, Washington, the mining data centre has been removed to make way for Nvidia GPUs. Rockdale, Texas, the largest online site at 563 MW, is in active evaluation of an AI transition. Molde in Norway is in early assessment of converting. Of 1,752 MW online, the sites still marked crypto-only are in Bhutan, Ethiopia and Ohio.
Total capacity, including pipeline, reaches 2,980 MW, but the largest single pipeline asset, 570 MW at Clarington, Ohio, has no service date. Bitdeer blames litigation by a neighbour it describes as under the influence of MHR, a New York private equity firm founded by Mark H. Rachesky. Potter said the company's motion to dismiss had been denied, and the case has entered discovery.
How the quarter was actually paid for
Operations consumed $159mn of cash in the quarter and $505mn over the half, against capital spending of $266mn. Bitdeer ended June with $496mn in cash and restricted cash, roughly what the first six months consumed.
Two sources filled the gap. Bitdeer sold $402mn of bitcoin over the half, which is why holdings fell to 150 BTC from 1,502 a year earlier while production rose to 2,694 from 565. It is not accumulating what it mines. And it raised $457mn net by issuing new shares, taking the share count up 15.4% in six months. Every share created makes each existing share a slightly smaller slice of the company.
On the morning of the results it cleared the way to do considerably more of that, filing the paperwork to sell up to $1bn of new shares whenever it chooses, through an arrangement that lets a company feed stock into the market at prevailing prices without announcing each sale. The programme runs through 13 banks acting as sales agents on commissions of up to 3%. At the $10.88 close on 7 Aug, $1bn is about 92mn shares, or 40% of the 227mn in issue at the end of June. The same filing discloses 3.6mn shares already sold since 30 June and lists data centre expansion as the first use of proceeds.
Potter told analysts the company would rather borrow against individual projects than issue shares because a loan secured on a contract leaves existing holders' stakes intact. He said that the same morning the $1bn was registered. Bitdeer said afterwards that project-level debt backed by long-term contracts remains its primary funding vehicle for data centre construction.
The related party has a name
A related party is funding much of the rest, and the results release does not name it. Of the $197mn headline digital-asset balance, only $35mn is actual digital assets; $162mn is a receivable from that party. Related-party borrowings stand at $633mn of $1.8bn in total. Over the half, Bitdeer borrowed $317mn in bitcoin from it, repaid $242mn in bitcoin and posted $358mn as collateral.
Bitdeer subsequently identified the counterparty to Sandmark as Matrix Finance and Technologies Holding Group and its subsidiaries, which it calls the Matrixport Group and which rebranded as BIT Group in March 2026. The arrangements, the company said, include "collateralized loan facilities, short-term Bitcoin denominated borrowings, a structured product agreement and cryptocurrency custody and trading services." That wording matches a risk factor in Bitdeer's annual report, filed on 30 Apr, in which BIT Group appears 99 times.
Jihan Wu has been Bitdeer's chairman since January 2021 and its CEO since March 2024. He is also chairman of Matrixport, according to Bitdeer's own investor relations site. Between the two companies he chairs sits roughly $1.15bn of gross exposure across borrowings, the receivable and posted collateral.
Bitdeer had earlier told Sandmark that the facilities relate to wafer procurement and operate on arm's-length, fully collateralized commercial terms. Custody, trading and structured products are not wafer procurement, and the company has not explained the difference. Nor has it said whether the related party's trading services were used for the $402mn of bitcoin sales recorded over the half.
Guidance moved, too, with full-year mining infrastructure capital spending revised to $200mn to $280mn. That excludes rigs, GPUs, AI Cloud and colocation, so it is not a guide to the total, which ran at $266mn in the quarter alone.
A new auditor, seven days early
One disclosure sits outside the results and belongs with them. On 3 Aug, a week before reporting, Bitdeer's audit committee dismissed MaloneBailey and appointed Deloitte & Touche in Singapore. The filing records no disagreements, but does report one reportable event: the material weaknesses management disclosed in the 2024 annual report. General and administrative costs rose to $34mn from $20mn in the quarter, including $4.8mn more in consulting fees the company attributes to corporate management and compliance work. Bitdeer said appointing a Big Four auditor marks a milestone in its organizational maturity.
Bitdeer also switched from international to US accounting standards on 1 Jan and restated prior periods, so every comparison above rests on recast figures.
Sandmark put questions to Bitdeer on 10 Aug on the gross losses across its business lines, the year-10 termination right at Tydal, the $1bn of new shares it has cleared itself to sell, the identity of the related party behind $633mn of its borrowings, and the change of auditor. The company responded after publication on its cash position, the purpose of the related-party facilities, the auditor appointment and its funding strategy, and on 13 Aug named the related party and set out its debt financing position. It has not addressed the gross losses by business line, nor whether the year-10 termination right affects the terms available to it.
