Bitdeer’s Revenue Jumps to $188.9M, But Profitability Slips Despite Record Hashrate Expansion

Mining Scale Surges to 78.1 EH/s—Yet Net Loss Widens to $159.5M

Bitdeer Technologies Group (NASDAQ: BTDR) posted eye-catching revenue growth for the first quarter of 2026, with total revenue leaping to $188.9 million from $70.1 million a year earlier. This dramatic improvement was powered by a sixfold expansion in self-mining hashrate, but higher costs and macro challenges weighed on the bottom line, resulting in a net loss of $159.5 million compared to a profit last year.

Hashrate and Mining Output Reach New Highs

The centerpiece of Bitdeer’s results was its aggressive buildout. Total hash rate under management soared to 78.1 exahashes per second (EH/s) from just 24.2 EH/s in Q1 2025—an increase of over 220%. The company mined 2,033 BTC this quarter compared to only 350 BTC a year ago, reflecting the rapid scaling of its operations.

Costs Outpace Revenue Growth—Gross Margins Remain Deeply Negative

Despite its revenue surge, Bitdeer’s cost of revenue jumped 208% to $228 million, driven largely by higher electricity and depreciation on the mass deployment of new mining rigs—including its just-launched SEALMINER A4. Gross margin deteriorated to -20.7% (down from -5.7% last year), underscoring how competitive pressures and macro headwinds in both energy markets and crypto have squeezed operating profitability.

The company also ramped up spending in its transition to an AI cloud and colocation model, with general and administrative expenses at $24.6 million (up 61%) and selling expenses doubling year-over-year. However, R&D expenses fell substantially as large one-off projects wrapped up.

Adjusted EBITDA Turns Positive—Cash Reserves Remain Strong

On the bright side, adjusted EBITDA recovered to a positive $14.4 million from a negative $45.6 million last year. The strategic deployment of high-efficiency SEALMINER rigs and a significant reduction in operating expenses contributed to the turnaround, even as headline net income was weighed down by higher interest costs and digital asset market swings.

Bitdeer exited the quarter with nearly $297.7 million in cash and equivalents, and a $245 million digital asset war chest. Total borrowing reached $1.9 billion, up $0.25 billion from December as the company continues to fund global infrastructure expansion.

AI and Colocation Strategy Gains Momentum

A key growth driver is Bitdeer’s pivot to AI cloud and colocation services. The company reported its AI Cloud business recently exceeded a $69 million annualized run rate, with new data center projects ramping up in Norway (the Tydal facility expected to be Norway’s largest operational AI data center), the U.S., and Asia.

Total global electrical capacity under management now reaches a remarkable 3,003.5 megawatts (MW)—establishing Bitdeer as a heavyweight in both crypto mining and the growing AI compute landscape.

What To Watch: Execution On AI, Margins, and Debt

While Bitdeer’s rapid scale-up is clear, the challenge now is to convert this infrastructure edge into sustainable profits. Gross losses and negative margins highlight the risk that rapid expansion, especially in high-cost environments, could stay a drag on the bottom line unless mining economics or AI-driven revenues improve quickly.

Management remains optimistic, underlining advanced tenant negotiations for its new datacenters and the multi-billion-dollar power portfolio as a strategic moat. As AI and Bitcoin mining converge, Bitdeer may be positioned as an infrastructure leader—if it can tackle costs, manage debt, and prove out the profitability of its AI initiatives in the quarters ahead.

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