Bitcoin
Bitdeer Tripled Its Mining Revenue and Still Lost Money on Every Business Line
14 Aug 2026, 13:42
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Bitdeer's Bitcoin self-mining revenue nearly tripled last quarter, but rising depreciation and falling prices pushed the segment into a gross loss, pushing the miner further toward AI data center leasing deals for stability.
Bitdeer Technologies Group nearly tripled its Bitcoin self-mining revenue in the second quarter, reaching $168 million versus $59 million a year earlier, yet the segment posted a gross loss rather than a profit, a reversal that explains much of the strategic shift now underway at the Singapore-based miner. Cost of revenue on the self-mining business hit $171 million, meaning a line that generated $4 million of gross profit a year ago instead produced a loss. Co-mining and the company's AI Cloud business also ran at a loss, leaving group gross margin at negative 3.7%, down from a positive 7.7% a year earlier.
The mechanics behind the squeeze are straightforward on paper but costly in practice. Bitdeer's average self-mining hashrate grew nearly 390% over the year, meaning new mining rigs came online faster than the revenue they generated could offset rising costs. Depreciation charges jumped to $108 million from $22.8 million a year earlier, largely because the company moved $613 million of inventory, mostly chips and finished mining rigs, onto its books as fixed assets for its own use rather than selling them to customers. That shift converted what used to be a one-time equipment sale into a recurring, multi-year depreciation expense. Net loss for the quarter came to $92 million, worse than the $63 million loss a year earlier, though narrower than the first quarter's $160 million loss.
Against that backdrop, a 16-year power lease signed in early August looks less like diversification and more like a hedge. Bitdeer's subsidiary agreed to lease 121 megawatts of capacity in Norway to Volta Tydal, a subsidiary of data center operator Volta serving an unnamed major AI lab, with contracted revenue expected to reach roughly $4.7 billion over the base term. Under the deal, the tenant pays rent with an annual escalator and reimburses electricity costs in full, effectively removing Bitdeer's exposure to both Bitcoin price swings and power costs for that portion of its portfolio. The arrangement includes a break clause after year ten, and a roughly $1.3 billion credit backstop from financial institutions that the company describes as anticipated rather than fully in place.
The pattern extends across Bitdeer's broader site portfolio. At its Wenatchee, Washington facility, mining infrastructure has already been removed to make way for Nvidia GPUs, while its largest online site in Rockdale, Texas is under active evaluation for a similar AI conversion. The company funded the quarter's cash needs partly by selling $402 million worth of Bitcoin from its holdings and raising $457 million by issuing new shares, pushing its share count up more than 15% over six months. Bitdeer also disclosed switching auditors to Deloitte just a week before reporting results, alongside continuing to flag material weaknesses in its financial controls first identified in its 2024 annual report.
The mechanics behind the squeeze are straightforward on paper but costly in practice. Bitdeer's average self-mining hashrate grew nearly 390% over the year, meaning new mining rigs came online faster than the revenue they generated could offset rising costs. Depreciation charges jumped to $108 million from $22.8 million a year earlier, largely because the company moved $613 million of inventory, mostly chips and finished mining rigs, onto its books as fixed assets for its own use rather than selling them to customers. That shift converted what used to be a one-time equipment sale into a recurring, multi-year depreciation expense. Net loss for the quarter came to $92 million, worse than the $63 million loss a year earlier, though narrower than the first quarter's $160 million loss.
Against that backdrop, a 16-year power lease signed in early August looks less like diversification and more like a hedge. Bitdeer's subsidiary agreed to lease 121 megawatts of capacity in Norway to Volta Tydal, a subsidiary of data center operator Volta serving an unnamed major AI lab, with contracted revenue expected to reach roughly $4.7 billion over the base term. Under the deal, the tenant pays rent with an annual escalator and reimburses electricity costs in full, effectively removing Bitdeer's exposure to both Bitcoin price swings and power costs for that portion of its portfolio. The arrangement includes a break clause after year ten, and a roughly $1.3 billion credit backstop from financial institutions that the company describes as anticipated rather than fully in place.
The pattern extends across Bitdeer's broader site portfolio. At its Wenatchee, Washington facility, mining infrastructure has already been removed to make way for Nvidia GPUs, while its largest online site in Rockdale, Texas is under active evaluation for a similar AI conversion. The company funded the quarter's cash needs partly by selling $402 million worth of Bitcoin from its holdings and raising $457 million by issuing new shares, pushing its share count up more than 15% over six months. Bitdeer also disclosed switching auditors to Deloitte just a week before reporting results, alongside continuing to flag material weaknesses in its financial controls first identified in its 2024 annual report.