Q3 2025 Bitdeer Technologies Group Earnings Call
Thank you for standing by and welcome to bit deers. Third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session to ask a question during the session. You will need to press star 1, 1 on your telephone, to remove yourself from the queue. You may press star 1 1 again, I would now like to hand the call over to egsi investor relations for bit dear. Please go ahead.
Thank you, operator. And good morning, everyone. Welcome to bit deer's third quarter 2025 earnings conference call.
Join me today are Matt Kong, Chief Business Officer; Haris Basit, Chief Strategy Officer; and Jeff Lever, VP of Capital Markets and Strategy.
Harris will begin today by providing a high-level overview of 5 years. Third quarter of 2025 results, and then covered the company's strategy and a detailed business update.
After that, Jeff will cover up the third quarter Financial results in more detail. And then we will open the call for questions.
To accompany today's our news call, we have provided a supplemental investor presentation. This presentation can be found on bits years, investor relations website under webcasts and presentations.
Before management begins their formal remarks, we would like to remind everyone that during today's call, we may make certain forward-looking statements.
These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially.
For a more complete discussion on forward-looking statements and the risks and uncertainties related to Big Year's business, please refer to its filings with the SEC.
Further in addition to discussing results that are calculated in accordance with International financial reporting standards or IFRS.
We will also make references to certain non-IFRS financial measures, such as the adjusted EBITDA and adjusted profit and loss.
For more detailed information on our non-ifrs financial measures.
Please refer to our earnings release that was published earlier today, which can be found on Bitdeer's IR website. Thank you. I will now turn the call over to Haris Basit.
Thank you, eugia, and good day, everyone. It's great to be with you today.
Since our last call, we've made significant progress across all of our strategic priorities, and I'm excited to share, how bitter is growing from a global leader in Bitcoin mining into a vertically, integrated Bitcoin infrastructure and AI platform.
Let's start with the numbers on slide 3.
Q3 marked a period of rapid growth and strong execution.
In the third quarter, total revenue reached 169.7 million up 173.6% year-over-year and up, 9.1% sequentially.
Gross profit came in, at 40.87% to 43 million.
Both substantially improved from Q2.
This performance reflects continued execution in our self-mining business.
Mass production of our seal, minor AS6, drove a 273.1% year-over-year and 105.4% sequential increase in our average operating self-mining hash rate to 29.1 exahash per second.
As of the end of October, we achieved 41.2 EXA hash per second.
Surpassing our 40x the hash per second target that we set out at the beginning of the year.
Looking forward, we plan to continue deploying our Seal Minor A6 to fill our substantial global power pipeline.
Through a combination of decommissioning older, generation, Rigs, and adding new seal, minor as6. We expect meaningful growth throughout 2026.
Which will ensure we remain 1 of the world's largest Bitcoin miners.
In addition to Hash rate growth, we expect continual improvement, in our fleetwide Energy, Efficiency to drive increased margins and profitability in the quarters ahead.
Our investments in chip, design data center infrastructure, and Global power portfolio are paying off.
Not only in strong financial performance, but also positioning us for the next major wave of demand for compute.
Our bitter AI cloud services business continues to scale.
Reaching in an annualized Revenue, run rate of 8 million dollars at the end of October.
October 31st, we operate 584 gpus with an 87% utilization rate.
Our newest, b200 systems install late in Q3 are being tested by customers and will drive additional Revenue.
We are finalizing deployment for nvidia's. GV, 2000, systems, and expected. Reach 1160 gpus operated by end of the year.
We are also in the process of procuring nvidia's, Next Generation, GB, 300 and B300 systems.
And as we look ahead, Victor's growth will be anchored by 3, strategic pillars.
Bitcoin mining.
Asic development and HBC AI.
Together. These represent a vertically integrated, highly defensible platform that leverages our technology expertise and extensive power portfolio.
To accelerate our AI footprint. We are taking bold. Deliberate steps to simultaneously pursue. Both collocation and cloud services.
With respect to collocation on our last earnings call, we guided the market that we intended to pursue a joint venture model with a development partner.
In September due to a significant increase in market demand. We let the exclusivity period under our Loi with this development partner expire. This was a strategic decision that gives us greater flexibility and allows us to take a more direct role in the HPC AI Data Center Market.
And retain more of the economics.
We intend to develop data centers, using our own internal development team, which will be significantly augmented through a strategic hiring.
Alongside highly experienced epcs and general contractors on a fee basis.
Regarding our cloud services business over the past 18 months, we have developed a fully vertically, integrated, AI infrastructure, platform in Singapore.
That includes bare metal gpus as well as orchestration networking and managed services.
These additional services are highly sought after by small and mid-size, Enterprise customers who require more than just bare metal offerings and are being underserved in today's markets. Now that we have a proven Concept in Singapore. We are ready to expand this business line into Malaysia, the US and Europe.
Our current customer discussions range from early to Mid-State, startups, in the biomedical Robotics and gaming Industries to more, traditional us, Enterprise customers seeking to expand their footprint.
We will provide additional details as this business model develops over the coming months.
Moving now to our HPC AI infrastructure plans.
For our 570 megawatt, Clarington, Ohio, site. We have already begun the design and procurement process for an HPC AI suitable substation.
Which is expected to be energized in the first half of 2027.
The local utility at Clarington has confirmed that the full 570 megawatts will be available by the end of Q3 2026.
Nearly a year earlier than expected.
Given its size the clearing and sight could be utilized for our cloud services business or co-location.
At the same time we have made the decision to convert our 175 megawatt title site in Norway into an AI data center by Q4 2026.
Given the announcement of Stargate Norway in July. We have seen a significant increase in inbound interest from potential tenants.
So we believe this site could be used for either our cloud services, business, or co-location.
The site was designed by our local Norway team with HPC AI in mind as the end use. So it already includes liquid cooling capabilities and a more robust electrical infrastructure.
Furthermore.
It utilizes a substation that is powered by 18 hydropower generators and 1 wind farm, giving it a high degree of reliability.
Our current analysis indicates that the site could be ready to accept gpus by the second half of 2026 with conversion costs. Well, below us and European AI data center benchmarks.
Additionally, we plan to expand our Singapore cloud services business into Malaysia.
Through a combination of owned and least opportunities. We anticipate activating up to 15 megawatts of cloud services capacity in Malaysia during 2026.
We are also upgrading our 13 megawatt Wachee, Washington site using a proprietary modular Data Center Technology.
This conversion is expected to be completed by 242026.
Further, we have initiated the conversion of 10 megawatts of power capacity at our Knoxville, Tennessee site into an AI data center, with targeted completion in Q4 2026.
We are evaluating potential us data center rental opportunities to bring our AI cloud services online domestically. As early as q1 2026,
In summary, the supply and demand imbalance for AI compute continues to widen.
And we expect this shortage to persist well into 2027.
Based on our estimates under the most optimistic scenario, converting 200 megawatts of our power capacity, fully towards AI cloud services. Could generate an annualized Revenue, run rate exceeding 2 billion dollars by the end of 2026.
Turning to our Asic business.
When we launched our aggressive ASIC roadmap last year, our goal was clear: industry leadership in performance and energy efficiency.
Our R&D team has delivered on that promise.
In September, we launched the seal minor A3 series now among the most energy efficient products in the market.
Mass production has started and initial shipments are expected this month.
We anticipate the A3 series will generate meaningful Revenue in 2026.
Looking ahead, our Focus shifts to our seal 04 chip.
To de-risk the development and ensure success, we are pursuing two distinct design approaches.
The tape out for the first seal 04 design was completed in September. And later sample verification, demonstrated approximately 6 to 7, Jewels per terahash power efficiency at the chip Level under low voltage, ultra power saving mode.
We are targeting mass production to begin in Q1 2026.
In the meantime, the development of the next-generation Seal 04 is significantly delayed.
Next, let's turn to our energy infrastructure shown on slide. 7 through 11 in the supplemental, investor presentation.
In Q3, we continue our rapid buildout of our global power and data center portfolio.
As of October 2025, we are fully energized at the Norway site and have completed the full 500 megawatts in Jig Milling, Bhutan.
This brings our total available electrical capacity to approximately 1.6 gigawatts and our total global power pipeline to approximately 3 gigawatts.
For our AI cloud services and colocation strategy, we believe we have one of the most attractive power portfolios in the industry.
Across our sites in Clarington. Ohio, Title, Norway and Wachee, Washington. We will have over 1.3 gigawatt of HPC suitable Power by Q2 2027.
this gives us a significant advantage in time to power in the ability to deploy, massive GPU capacity, rapidly
In September, we announced a new 300 megawatt site in Niles, Ohio.
The project remains on track for energization in q1 2029.
The site spans 41.8 acres and includes an interconnection agreement with FirstEnergy.
It is located about 75 miles from our masculine, Ohio site and 125 miles from our Clarington. Ohio site.
We continue to secure low-cost power sites globally. Reinforcing our competitive advantage, in both Mining and AI infrastructure.
In summary.
We are proud of our team's execution this quarter.
These efforts are already reflected in our financial results and have established a scalable foundation for long-term growth.
Thank you.
I'll now turn it over to Jeff leberge our VP of capital markets and strategy to go over our detailed Financial results for the quarter,
Thank you, Haris. Before I go over Bitdeer's third quarter financial results, I'd like to remind everyone that all figures I refer to today are in US dollars. Q3 consolidated revenue was $169.7 million, up from $62 million in Q3 2024 and $155.6 million in Q2 2025, or up 173.6% year-over-year and 9.1% sequentially.
Million dollars versus $31.5 million in Q3 2024 and $59.3 million in Q2 2025, or up 315.6% year-over-year and up 120.7% sequentially. These results were primarily due to a 273.1% year-over-year and 105.4% sequential increase in self-mining hash rate, as well as higher Bitcoin prices.
These increases were partially offset by higher mining difficulty.
Co minor sales revenue was 11.4 million compared to 0 in Q3 2024 and 69.5 million in Q2 2025.
Total gross profit. For the quarter was 40.8 Million versus 2.8 million in Q3 2024 and 12.8 million in Q2 2025.
Gross margin was 24.1% versus 4.5% in Q3 2024 and 8.2% in Q2 2025.
The year-over-year and sequential increase in our gross margin was primarily driven by higher self-money revenue and improved fleet efficiency.
We expect to continue gross margin improvements, over the coming quarters as our hash rate ramps up and overall Fleet efficiency improves.
Total operating expenses for the quarter were 60.5 million versus 42.9 million in Q3 2024 and 42.3 million in Q2, 2025 the year-over-year and sequential increase was, primarily driven by the 1-off R&D costs for the co4 chip development and tape out and non-cash amortization expenses of intangible assets related to the acquisition of free chain.
Other operating income was 26.5 million primarily due to a 22.2 million mark-to-market adjustment to our cryptocurrency receivables as a reminder under IFRS Bitcoin and other cryptocurrencies are classified as intangible assets and our measured at costs less any accumulated impairment losses with no subsequent upward evaluation permitted.
However, during the quarter, we entered into a $100 million Bitcoin-backed loan facility, pledging 1,400 Bitcoin as collateral.
As a result, these Bitcoin were reclassified as cryptocurrency receivable.
IFRS requires that any cryptocurrency held as a receivable or payable be marked to market, which led to this adjustment.
Other net loss for the quarter was 238.5. Million versus 14.7 million in Q3 2024 and 108.5 million in Q2 2025.
The net loss was due to the non-cash. Derivative losses on the convertible. Senior notes issued in August, 2024 November 2024 and June 2025, which I will discuss in more detail in the liability section.
IFRS net loss was $266.7 million versus $50.1 million in Q3 2024 and $147.7 million in Q2 2025.
Adjusted loss was $32.8 million compared to $25.6 million in Q3 2024 and $24.4 million in Q2 2025.
The increase in loss was primarily due to higher operating expenses and interest expense related to The increased borrowings partially offset, by the year-over-year, higher revenue, and gross profit margins.
Adjusted data was positive: $43 million versus negative $7.9 million in Q3 2024 and positive $17.3 million in Q2 2025.
The year-over-year growth was primarily driven by significantly higher self-mining hash rate as a result of the company's mass production and deployment of seal miners A1 and A2 during 2025.
Note that both the adjusted loss and adjusted EBA figures for the quarter do not include the $22.2 million favorable mark-to-market gain from Bitcoin pledged as collateral.
This quarter's higher year-over-year and sequential topline and non-GAAP bottom line performance was mainly driven by higher self-mining, hash rate CL minor sales, and higher Bitcoin prices.
These were partially offset by higher Global Network, cash rate and higher R&D costs as previously described.
Net cash used for operating activities was -520 Million. Primarily driven by Seal miners supply chain and Manufacturing costs electricity costs from the mining business General Corporate overhead and interest expense
7 million, which was driven.
By $60 million of capital expenditure, of which $32 million was related to data center infrastructure and related construction.
Proceeds from the disposal of cryptocurrencies from our primary business were $89 million. Net cash generated from financing activities for the quarter was $388 million, resulting primarily from approximately $320 million of borrowing from a related party and $91 million of proceeds from shares sold under our ATM program, partially offset by $48 million of repayments of borrowings.
Moving to our 2025 infrastructure spend.
We expect capex for the continued buildout of our global power and data center infrastructure to be in the range of $210 million to $240 million for calendar year 2025.
This range includes reported infrastructure capex from the previous 9 months of approximately 168 million.
The remaining projected capex, is expected to fund the completion or near completion of our data centers in title, Norway jiggling Bhutan, mazlin Ohio, and Ethiopia, as well as the partial completion of the 101 megawatt, gas fired, power plant in Alberta Canada. Please note that this guidance only factors in power and data center and does not include capex for Co Miners and gpus
In terms of our balance sheet, we ended the quarter in a strong financial position with 196.3 million in cash and cash, equivalents 82.2 million in cryptocurrencies held at costs less impairment.
$163.9 million in cryptocurrency receivable held at fair market value and $824.3 million in borrowings. Excluding derivative liabilities, please note the $82.2 million in cryptocurrency is accounted for according to IFRS rules and is currently below its market value.
Derivative liabilities were $672.5 million, which relate to the November 2024 and June 2025 convertible senior notes, representing a $234.6 million increase compared to the last quarter.
This is a non-cash fair value adjustment driven by the increase in our stock price and does not impact our liquidity or operations.
Under IFRS certain derivative instruments such as warrants. And convertible, debt are required to be revalued at fair, market value each reporting period as our stock price increases the fair value of these instruments Rises resulting in a higher reported liability and vice versa.
The recorded liability will ultimately be netted at settlement, either upon conversion to equity or expiration, and does not represent an actual cash outflow. Finally, regarding our outstanding ATM facility.
We have sold 6.2 million additional shares during the quarter.
Thank you, everyone. That concludes the prepared remarks section of our earnings call operator. Please open the call for questions.
Thank you, sir. As a reminder, to ask a question, you will need to press *1, 1 on your telephone to remove yourself from the queue. You may press *1, 1, 1 again. Please stand by while we compile the Q&A roster.
Our first question.
Comes from the line of Greg Lewis, BTIG. Please go ahead, Greg.
Yes. Hi, thank you and good morning and good afternoon and thanks for taking my questions. Um, you know, Harris, thanks for the update on on kind of the the progression of of the HPC opportunity as you guys think about it. I wanted to talk a little bit, a little bit about that. Um, you know, you you called out a few of the sites. I mean, it sounds like the Washington and and maybe Tennessee could be, you know, maybe move up in the queue just giving their size. Um, so so I I guess 1 as we think about, you know, beyond you know I guess I guess first, if you could talk a little bit more, how you see the the opportunity in Asia progressing and then as we as we kind of
Continue to gain momentum in Asia, and how we're able to kind of expand that into the U.S.
Hello.
You can hear me? You can't. You can hear me, okay?
Uh, gentlemen, please make sure your lines aren't muted. And if you want to speak, please look at your handset.
okay, can
Hey Harris. I just heard you but there was an echo echo.
Yeah, yeah. Let me see if I can get this fixed.
Hey, hey. Hey, Jeff. If you're on the line. Um, I guess that'd be curious to know about. Um, it looked like we added a site in, in Ohio Niles Ohio. Um, you know, are you there?
Okay, can you hear me okay?
Yes sir. Please proceed.
Yeah, okay, so sorry about that. I'm not sure what was going on. Um,
So AI, Greg, let me answer your question. I answered it once, but I think nobody heard me.
So uh it's not that we're going to do uh Malaysia first and then go to the us we're doing both simultaneously, we're definitely moving forward in Malaysia and also in uh a number of locations outside of the US. So that's um I think the answer to your first question. Do you have a second question?
And I can't remember what it was. Yeah, I, yeah. I mean, and I guess I was curious like, are these are all these sites going to be Nvidia, are you only looking at it sounds like we're focused on the ah, ah, 300s is, is that going to kind of be, or could we see it? It seems like some of these other data center, uh, potential suppliers are, are looking beyond the video. I, I know, at 1 point, you were also looking to develop, um, you know, something Beyond, just an Asic chip as well.
So right now, everything, uh, that we're doing in AI is largely Nvidia-based?
So the uh we're not looking at developing our own AI chip at at the moment, if that's what your question was.
Okay. And and and then my other question was around the um,
I guess we acquired a new site, Niles Ohio. Um, you know, be curious um you know what was kind of the the process in that had that was that a site that, you know, would've been looking at. I'm trying to understand I guess a couple things 1 is, you know, realizing every site's different how should we think about the time? You know of incremental site allocations? Um and you know I'd be curious about that.
Yeah. Hey Grace Jeff so the nio Ohio site was was actually quite a few months ago we just uh finalized it and made the announcement last month so strategic
Acquisition, you know, it's, uh, less than 100 miles from both of our.
Our sites other sites in Ohio uh energization does not come until q1 of 2029. So it's a it's a little ways out. So, you know, I think we did you think that it's like, it's this additional optionality depending on how we, what direction we go with the the Clarington, and the maslen, site long term. So um, just long-term optionality is how we're thinking about that. And in general, we are in a mode of actively looking for sites that might be useful. Uh so you know where
We are we have a group that's actively doing that.
Okay, super helpful. Thank you very much.
Thank you.
Our next question comes from the line of Kevin Cassidy of rosenblat security. Please go ahead. Kevin
Hi, this is, uh, Chris Meyers on for Kevin Cassidy, and I'm just looking if you guys could provide some additional specifics on the reason for the delay of the Q4.
Uh, seal minor ship.
Yeah. So it just to be clear. It's a, it's a new generation of architecture. Um well we're very confident in the technology still. It's really just that the implementation of it is um, quite a bit more difficult than we originally anticipated and does involve, uh, significant changes to the design flow and the Eda tools.
And, uh, so we're just, uh, working through those things to do that, and um, that’s really the source of the delay.
Okay, uh, thank you. And if I could ask a follow-up, um, are there any additional R&D expenses as those come to market? As the Seal Minor 04 comes to market?
I mean.
I don't think that it's going to be any especially, you know, unusual R&D expenses. Uh,
R&D expenses associated with any chip.
Right.
Um,
And then, I guess if I could ask one last follow-up, um,
You could describe the cost difference between assembling the seal miners in the U.S. versus outside of the U.S.
Provide a little detail on. That would be great.
So, there'll be obviously, there'll be a slight increase in the production costs for, for once, done in in the US. So, if you think about the cost of the of, of a seal minor about 775% of the cost is, is the chip. So, the remaining 25 to 30% is the balance of the manufacturing is really where where where the Delta will be on. So yes, we would expect that to that to be higher in most cases. But uh, you know, again, depending on what the Tariff is uh, for exporting countries.
We don't have an exact number for you at this time.
Okay, um, well I I appreciate the detail and congratulations on the good result.
Thank you.
Thank you. Our next question comes from the line Mike brondo of Northland, please go ahead. Mike.
Yeah. Hey guys. I have two questions. First,
How will you decide whether you'll go to cloud service provider route versus the collocation route?
Um any insight there would be helpful and then 2 could you talk a little bit about the demand you're seeing in Norway and how that compares to the demand for some of your us sites?
Yeah. So, um, with respect to AI Cloud versus collocation, we are definitely, uh, putting our emphasis on the AI Cloud space. We will optionally use collocation, where it might make sense, but our primary focus is on AI cloud.
With regards to Norway. Um,
yeah, I mean that site the the demand is largely driven by that site being 1 of the few places in Europe, where
You can get a large site with low power and in the, in the very specific case of our site. It's um very much developed towards already. Being a tier 3 type of data center. So it's doesn't take much effort to or as much resources to change it.
But the word a normal Bitcoin mining site. So there, there was a lot of interest in. There is a lot of interest in that site for those reasons.
Um, I don't know is the demand greater for that site as compared to maybe a US site?
I don't know, I mean, you know, if it perhaps because it's so close to being a fully developed tier 3 site,
The answer is probably. Yes it's it's just takes less effort to turn it into an AI data center than our us sites. Yeah. I I think time to power is really been. What's been driving the the demand for it. It's the site is here said has has a lot of attractive attributes that make the time to power much shorter. You know, we think we can have this up and running sometime in the second half of of next year possibly. So I think that's driving a lot of it.
Great. Hey, thanks guys.
You bet.
Thank you.
Our next question comes from the line of Nick Giles of B Riley Securities. Please go ahead, Nick.
Good morning, everyone.
I apologize for the noise in the bedroom in front of you. Um, I wanted to ask questions regarding your financial options for the development of the HTTPR capacity here. So, to what extent do you expect that set of steps to be funded by your GD partner? And additionally, is there any impact on your...
Part of capital from your BTC calling given that they could potentially do that collateral, and sell for instance, the rates. Um, thank you.
So you've got a lot of background noise there can, I'm not sure we we thought that were you asking about a development partner?
Yeah, Jeff I thought I apologize uh, in the transit. So um, so question basically.
On your financing options for the development of HPC and AI. So I would I would wonder what extent do you expect total Catholics to be founded by by your JV partner and and is there any impact on your cost of capital from Bitcoin holding because I would assume they could potentially be you as collateral and help bring the right? Um, thank you.
So uh, at the present time, we don't have a JV partner in in this development of HPC, AI.
Going to approach it using a a joint venture partner development partner. Uh, we did have an Loi with a, with a group previously this year. Uh, we left that Loi expire, uh, in favor of basic pursuing, the opportunity more, uh, on our own using, uh, fee based CPC contractors and augmenting our own internal development team. So, we are not to say we we may not pursue it in the future, but uh, at this at the present time our our, our strategy is to uh pursue it more on our own.
Thanks. That's, that's clear. But uh and my follow-up is about, um, regarding the most optimistic scenario where you'll find, so found this megawatt of AI Cloud capacity, but could you provide more detail on how this capacity will be allocated across your site if possible? Thank you.
I'm having trouble understanding the question.
Sorry about that.
No. Uh
Can you hear me? Um, I mean, this is this is about 200 megawatts of AI, 12 capacity. But if you offline has okay,
Yeah, yeah. So yeah, if you could provide the split between your site with the help of the 200 megawatts, right? That includes um, Malaysia includes, Singapore, includes, uh, 1 achieve includes uh title in Norway um and we expect the vast majority of that to be uh an AI Cloud as opposed to co-location
So, is that?
um,
Did I answer your question?
Yeah, thank you very much. I apologize once again for that. Um, okay. Thank you.
Thank you. All right, next question comes from the line of Mike colonies of HC, Wayne Wright and Company. Please go ahead. Mike.
Hey, good morning, guys. I appreciate all the updates today. Just a couple for me. Um, first one: as an ASIC manufacturer with better visibility and ship availability, do you foresee any procurement risks with regards to securing some of the latest-gen GPUs from Nvidia for the broader AI infrastructure industry?
uh, we haven't seen anything, uh,
so far, I mean, it's
Yeah, I I don't I'm not sure that, uh, Jeff and I are, well, positioned to answer that question right now because we're not directly in the procurement. We're getting what we what we require uh, or bit there but our, you know, initial, uh, orders are relatively small. So I'm not sure if they're indicative of the industry as a whole
Got it, got it. And here, as you mentioned in your prepared remarks, um, that you intend to continue to deploy your S19 Miners A6 across your sites, uh, to continue to build out the Bitcoin mining business in 2026. I guess, how should we think about growth, uh, coming out of this year and looking into next year for Bitcoin mining?
We haven't released any uh, estimates on that yet, but it it, you know, it will be significant, you know, we're not plateauing at the level that we're at. Now we're still on a very steep upward, uh, trajectory
Yeah, Mike. I would just say, I think we've got a lot of, uh, a lot of Leverage to to pull their. Uh, we've got new capacity coming online in Maslin Ohio. 221 megawatts, Ethiopia is 50 megawatts. Uh, you know, we have some unused capacity and some of our, our current sites right now. And uh, we have also have uh, a couple under megawatts that is dedicated to older generation miners that we'll be looking to to, to replace, uh, in the coming months. So it'll really be a capacity. And, uh, you know, Asic manufacturing will be sort of the the bottleneck not not power.
Got it helpful color. Appreciate you taking my questions.
You bet.
Thank you. Our next question.
Comes from the line of Dylan hesseman of Roth, Capital Partners your question, please. Dylan.
Hey, thanks. Good morning.
His follow up on some of the AI Cloud things about the 2 billion ARR.
Um, how do you sort of expect your customer base to be across that 2 billion? I know you mentioned some of the industries you're working in but do you expect it to be?
Um, multiple customers like multiple big customers, or are we talking 10, 20, 30, or 30 plus small contracts?
So I I think it'll be a combination of both. So in in places like Asia, uh, we are seeing a lot of demand from that, I would say.
Small to Middle Market companies. Uh, that are looking to to, to stand up some AI models, uh, in some of those industries that, that we mentioned, we're also seeing demand from from larger, you know, called medium and and large sized Enterprise customers that, uh, you know, are looking to deploy.
Uh in uh, gpus. So, uh, you know, I think to, to get to that number as we kind of laid out as our, our most optimistic scenario would likely involve accommodation of of both uh both you know, smaller Middle Market and you know maybe 1 or 2 larger Enterprise customers but
Got it. Thanks. And as a follow-up on, on the data center, build side of things. Um, how are you guys seeing build costs and supply chain trending? Um, as you sort of get closer to finishing, I guess a lot of these types of their in the pipeline,
Yeah. Look I think
Long lead, time items are still the same.
Before it's the, a lot of the electrical equipment, you know, Transformers switch gears, uh, Breakers. Things like that. Look, I think they're, they're, they're out there.
To be found, you know, we've got a very experienced procurement team, you know, this is not the first time where we're, this type of equipment has been in in high demand and and shortages. And we've had success sourcing it in the past.
Uh, you know, I think some of the uh, potential tenants and other, you know, epcs that we may be working with. There's a possibility that they have some some of that stuff kind of queued up as well. So because Avenues to to, to get it. Uh, but uh I think the supply chain Still Remains
You know, stressed to some extent.
Great. Thanks for taking my question.
Thank you.
Our next question comes from the line of John tadada of needam and Company. Please go ahead John
Hey, thanks for taking my question. Um, I just wanted to, to confirm stuff from earlier. Um, so 1, it does seem like the focus is more on a AI Cloud. So GPU is a service versus HPC Colo. Um, it it is you are just seeing a lot more demand, uh, in that area. And, um, should we also expect the Ohio sites would be, uh, more geared for AI Cloud versus a koi. And then I have a follow-up.
The Ohio site? Yes, I think the answer is yes it could be more for AI Cloud but it's a large enough site where it could be divided as well. So the final determination of that site is is is not uh clear at the at the moment.
um,
would you have a follow-up question? You said yeah.
Yes. So, but but also just within that um uh, I guess is there are you seeing more customer demand for AI Cloud versus collo? And then I guess my follow-up would be. Um, just as you think about procuring more megawatts out there, um, we have heard from some peers that there is kind of a stranded power, um, available just. Is there a kind of a guardrail of how much additional capacity may be annually? Uh, you guys think you could procure,
We're seeing a lot of demand for both collo and um, AI Cloud. So I it's hard to quantify which 1 is more or less, but we're seeing a lot for both.
Yeah, and then yeah, I, I would agree with that. I mean, I don't think it's it's just different demand. I mean, obviously different types of customers are, are looking forward. Sometimes the same customers are, but, um, I think that the Demand right now is robust time to power. I think is the most critical.
Yeah, I think and most recurring theme we're hearing so, you know, 2026 early 27 power is, is desirable right now. So I think for, for both business models, uh, on the power procurement side. Yeah, I mean, look, I think we, we, we're seeing that too. I mean, there is some strand of power. I think we're seeing also more of a willingness to, for, you know, tenants and and users to, to be more accepting of that, that type of, of power, uh, you know, behind the meter power potentially. Um, and
So, we're seeing that, and we're, you know, like I said, we've got a great procurement team that's been able to, uh, acquire low-cost power sites in the past. And, you know, we're confident in their ability to continue to do so.
Great. Thanks again. Appreciate it.
Thank you again to ask a question. Please press star, 1, 1 on your telephone again, that's star 1. 1 to ask a question,
Our next question comes from the line Bill papa, no of KBW. Your line is open. Bill.
Yeah, good morning gentlemen. Thank you for taking my questions. Um with respect to the delay development of the sealed for minor. Where would you say the confidence level sits today?
Uh, with respect to this A6 having industry. Leading specs, when it gets released, just trying to understand the extent of the delay. Thank you.
Um the confidence is high that the architecture is the right 1 to go for in future designs. Uh, so I I, you know, I don't think there's any um, real lack of confidence in that.
And that, you know, for subsequent designs, we would be using an architecture like this.
The area where the confidence is low is the exact timing of the release.
Still, did you have a follow-up question?
No, just that question. Thank you for uh thank you for calling. Yeah.
Great.
I think we have 1 more. I'm sorry. All right. Next question comes from the line, uh, Brian King Slinger of Alliance Global Partners, your line is open, right?
Great. Thanks so much for taking my question. Um I'm just wondering if you can help. Um,
Provide some sort of estimate or how you see a return on invested capital for cloud service. Provider versus collocation services.
Yeah. Uh,
Return profile. So, you know, obviously we've seen some of our, our peers out there, but, you know, putting numbers out. And I think those numbers are are largely, you know, accurate, uh, depending on on how you're you're looking at it with, I would say both the if you're looking at both the
GPUs and the data center costs in there, and an IR specific to both. Um, you know, I think.
they can be, you know, obviously different we're seeing you know, co-location obviously the rates, you know, very similar to what what others have have uh
Have reported recently so you know, that's a, you know, typically a yield on cost. So I think it's just going to depend on on your construction costs, uh, where you're constructing, uh, and I think the, the end user I think, uh, we're seeing a lot of variance in end user requirements, as far as infrastructure needs uh, where the backup power is required, where they they'll be providing some of the of the kind of key infrastructure there. Uh, so that on the collocation side, especially I think it's going to really affect your your return on invested capital or or any other return metrics.
Okay, thanks.
Ladies and gentlemen, that does conclude the Q&A portion of our call. Bitdeer is a conference for today. Thank you for participating. You may now disconnect.