Q2 2026 Bitdeer Technologies Group Earnings Call

August 10, 2026

Operator: Good day. Thank you for standing by. Welcome to Bitdeer's Q2 2026 earnings conference call. At this time, all participants are on a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Tesh Dahya, Head of Investor Relations. Please go ahead.

Speaker #1: After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising that your hand is raised. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Tess Dyer, Head of Investigations.

Speaker #1: Please go ahead.

Speaker #2: Thank you, operator, and good morning, everyone. Welcome to Bitdeer Technology Group's second quarter 2026 earnings conference call. Joining me today are Jihan Wu, Founder, Chairman, and Chief Executive Officer; Harris Bassett, Chief Strategy Officer; and Michael Potter, Chief Financial Officer.

Tesh Dahya: Thank you, operator, and good morning, everyone. Welcome to Bitdeer Technologies Group's Q2 2026 earnings conference call. Joining me today are Jihan Wu, Founder, Chairman, and Chief Executive Officer, Haris Basit, Chief Strategy Officer, and Michael Potter, Chief Financial Officer. Today's call will begin with Haris providing a review of our recently announced Tydal, Norway colocation lease agreement, followed by Michael with a review of our business segments and Q2 financial results. Before management begins their formal remarks, I 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.

Speaker #2: Today's call will begin with Harris providing a review of our recently announced TIDO Norway colocation lease agreement, followed by Michael with a review of our business segments and second quarter financial results.

Speaker #2: Before management begins their formal remarks, I 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.

Tesh Dahya: Before management begins their formal remarks, I 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.

Speaker #2: which may cause actual results to differ materially. For a more complete discussion of forward-looking statements and the risks and uncertainties related to Bitdeer's business and industry, please refer to the company's filings with the U.S.

Tesh Dahya: For a more complete discussion of forward-looking statements and the risks and uncertainties related to Bitdeer's business and industry, please refer to the company's filings with the US Securities and Exchange Commission. I also want to note that we will be discussing certain non-GAAP financial measures and operating metrics today. A reconciliation of these measures to the most directly comparable GAAP measures is included in our earnings release issued earlier today. These non-GAAP measures should not be considered in isolation from or as a substitute for the most directly comparable measures prepared in accordance with GAAP. As a reminder, changes to the fair value of our digital assets are reflected in GAAP net income and may introduce non-cash volatility into our reported results. With that, I will now turn the call over to Haris.

Speaker #2: Securities and Exchange Commission. I also want to note that we will be discussing certain non-GAAP financial measures and operating metrics today. A reconciliation of these measures to the most directly comparable GAAP measures is included in our earnings release issued earlier today.

Speaker #2: These non-GAAP measures should not be considered in isolation from, or as a substitute for, the most directly comparable measures prepared in accordance with GAAP.

Tesh Dahya: These non-GAAP measures should not be considered in isolation from or as a substitute for the most directly comparable measures prepared in accordance with GAAP. As a reminder, changes to the fair value of our digital assets are reflected in GAAP net income and may introduce non-cash volatility into our reported results. With that, I will now turn the call over to Haris.

Speaker #2: As a reminder, changes to the fair value of our digital assets are reflected in GAAP net income and may introduce non-cash volatility into our reported results.

Speaker #2: With that, I will now turn the call over to Harris.

Speaker #3: Thank you, Tess. And good morning, everyone. This is our first earnings call since we announced the execution of our 4.7 billion colocation lease at TIDO Norway, and I would like to begin by putting that agreement in context.

Haris Basit: Thank you, Tesh, and good morning, everyone. This is our first earnings call since we announced the execution of our $4.7 billion colocation lease at Tydal, Norway, and I would like to begin by putting that agreement in context. Over the past several years, we have worked to build a power infrastructure portfolio that we believe is well-positioned to support both our Bitcoin mining operations and our expansion into AI infrastructure. Tydal represents an important step in converting that portfolio into long-duration contracted revenue, and it establishes AI infrastructure colocation as an additional pillar of our business, alongside our AI Cloud, Bitcoin mining, and ASIC development and manufacturing operations. We are pleased with the terms of this agreement and with the caliber of Volta as our counterparty.

Speaker #3: Over the past several years, we have worked to build a power infrastructure portfolio that we believe is well positioned to support both our Bitcoin mining operations and our expansion into AI infrastructure.

Speaker #3: TIDO represents an important step in converting that portfolio into long-duration, contracted revenue, and it establishes AI infrastructure colocation as an additional pillar of our business, alongside our AI cloud, Bitcoin mining, and ASIC development and manufacturing operations.

Haris Basit: Tydal represents an important step in converting that portfolio into long-duration contracted revenue, and it establishes AI infrastructure colocation as an additional pillar of our business, alongside our AI Cloud, Bitcoin mining, and ASIC development and manufacturing operations. We are pleased with the terms of this agreement and with the caliber of Volta as our counterparty.

Speaker #3: We are pleased with the terms of this agreement and with the caliber of Volta as our counterparty. We view TIDO as an important proof point for this strategy, and we intend to pursue additional opportunities of this kind as they arise.

Haris Basit: We view Tydal as an important proof point for this strategy. We intend to pursue additional opportunities of this kind as they arise. Agreements of this scale and complexity reflect the work of our team over the past several years, and I want to thank everyone involved for their efforts in reaching this milestone. With that, let me walk through the terms of the Tydal transaction in more detail. On 4 August, we announced that our subsidiary, Tidal Data Center AS, has executed a 16-year colocation lease and services agreement with Volta at our Tydal campus in Norway. Under the agreement, we are delivering 121 IT megawatts supported by approximately 133 gross megawatts. This will be spread across four existing data halls and will be configured to run NVIDIA GPUs.

Speaker #3: Agreements of this scale and complexity reflect the work of our team over the past several years, and I want to thank everyone involved for their efforts in reaching this milestone.

Speaker #3: With that, let me walk through the terms of the TIDO transaction in more detail. On August 4, we announced that our subsidiary, TIDO Data Center AS, has executed a 16-year colocation lease and services agreement with Volta at our TIDO campus in Norway.

Haris Basit: On 4 August, we announced that our subsidiary, Tidal Data Center AS, has executed a 16-year colocation lease and services agreement with Volta at our Tydal campus in Norway. Under the agreement, we are delivering 121 IT megawatts supported by approximately 133 gross megawatts. This will be spread across four existing data halls and will be configured to run NVIDIA GPUs.

Speaker #3: Under the agreement, we are delivering 121 IT megawatts, supported by approximately 133 gross megawatts. This will be spread across four existing data halls and will be configured to run NVIDIA GPUs.

Speaker #3: The lease is expected to generate approximately $4.7 billion in contracted base-term revenue over the initial 16-year term. An 8-year renewal option, if exercised, would increase the potential contract value to approximately $8 billion over 24 years, with the tenant termination right at the end of year 10.

Haris Basit: The lease is expected to generate approximately $4.7 billion in contracted base term revenue over the initial 16-year term. An eight-year renewal option, if exercised, would increase the potential contract value to approximately $8 billion over 24 years, with the tenant termination right at the end of year 10. The lease is structured as a modified gross arrangement. Volta pays a combined base rent and service fee with a 3% annual escalator. Electricity costs are fully reimbursed on a pass-through basis, which protects our margin from energy price volatility and provides a highly predictable cash flow. Over the 16-year base term, we expect this agreement to generate average annual revenue of approximately $2.4 million per IT megawatt. Importantly, Volta's obligations are anticipated to be backed by an institutional-grade credit structure.

Speaker #3: The lease is structured as a modified gross arrangement. Volta pays a combined base rent and service fee with a 3% annual escalator, and electricity costs are fully reimbursed on a pass-through basis.

Haris Basit: Volta pays a combined base rent and service fee with a 3% annual escalator. Electricity costs are fully reimbursed on a pass-through basis, which protects our margin from energy price volatility and provides a highly predictable cash flow. Over the 16-year base term, we expect this agreement to generate average annual revenue of approximately $2.4 million per IT megawatt. Importantly, Volta's obligations are anticipated to be backed by an institutional-grade credit structure.

Speaker #3: Which protects our margin from energy price volatility and provides a highly predictable cash flow. Over the 16-year base term, we expect this agreement to generate average annual revenue of approximately $2.4 million per IT megawatt.

Speaker #3: Importantly, Volta’s obligations are anticipated to be backed by an institutional-grade credit structure. This anticipated credit enhancement meaningfully reduces our counterparty risk and improves the financeable quality of these contracted cash flows.

Haris Basit: This anticipated credit enhancement meaningfully reduces our counterparty risk and improves the financiable quality of these contracted cash flows, which supports our plan to access attractive debt financing terms to fund the remaining development at Tydal. Our remaining capital expenditure is approximately $500 million, which we believe is significantly more capital efficient than a typical greenfield data center build. We expect to raise project-level financing to fully fund our remaining Tydal capital needs and to provide significant additional capital. Delivery is structured across two equal-sized phases, targeting 31 December 2026 for the first phase and 31 March 2027 for the second. A word on our tenant. Volta is a compute infrastructure developer focused on large-scale AI and data center deployments in power-advantaged markets. Volta has announced a $10 billion strategic partnership with an AI lab and a broader development pipeline exceeding one gigawatt.

Speaker #3: This supports our plan to access attractive debt financing terms to fund the remaining development at TIDO. Our remaining capital expenditure is approximately $500 million.

Speaker #3: We believe this is significantly more capital efficient than a typical greenfield data center build. We expect to raise project-level financing to fully fund our remaining TIDO capital needs and to provide significant additional capital.

Haris Basit: We expect to raise project-level financing to fully fund our remaining Tydal capital needs and to provide significant additional capital. Delivery is structured across two equal-sized phases, targeting 31 December 2026 for the first phase and 31 March 2027 for the second. A word on our tenant. Volta is a compute infrastructure developer focused on large-scale AI and data center deployments in power-advantaged markets. Volta has announced a $10 billion strategic partnership with an AI lab and a broader development pipeline exceeding one gigawatt.

Speaker #3: Delivery is structured across two equal-sized phases, targeting December 31, 2026, for the first phase, and March 31, 2027, for the second. A word on our tenant.

Speaker #3: Volta is a compute infrastructure developer focused on large-scale AI and data center deployments in power-advantage markets. Volta has announced a $10 billion strategic partnership with an AI lab, and a broader development pipeline exceeding 1 gigawatt.

Speaker #3: In selecting Volta as our partner at TIDO, we evaluated their technical ability to execute a large-scale GPU deployment, the quality and enforceability of their anticipated credit support, and their ability to move rapidly to match the anticipated TIDO construction timeline.

Haris Basit: In selecting Volta as our partner at Tydal, we evaluated their technical ability to execute a large-scale GPU deployment, the quality and enforceability of their anticipated credit support, and their ability to move rapidly to match the anticipated Tydal construction timeline. It is important to note that Tydal will incorporate leading-edge NVIDIA GPUs, has one of the highest reliability grid connections in Europe, is 100% powered by renewable energy, and has an extremely high energy efficiency with a PUE of approximately 1.1. Our broader power and infrastructure portfolio stands at approximately three gigawatts of total global electrical capacity at the end of Q2, up approximately 12% year over year. We continue to evaluate opportunities for additional grid-connected and behind-the-meter expansion sites globally across both new and existing sites. Our objective is straightforward: continue acquiring, building, and converting powered infrastructure.

Speaker #3: It is important to note that TIDO will incorporate leading-edge NVIDIA GPUs, has one of the highest reliability grid connections in Europe, is 100% powered by renewable energy, and has an extremely high energy efficiency with a PUE of approximately 1.1.

Speaker #3: Our broader power and infrastructure portfolio stands at approximately 3 gigawatts of total global electrical capacity at the end of the second quarter, up approximately 12% year over year.

Haris Basit: Our broader power and infrastructure portfolio stands at approximately three gigawatts of total global electrical capacity at the end of Q2, up approximately 12% year over year. We continue to evaluate opportunities for additional grid-connected and behind-the-meter expansion sites globally across both new and existing sites. Our objective is straightforward: continue acquiring, building, and converting powered infrastructure. We will share updates on our progress here when appropriate. I will now turn the call over to Michael to walk through our business segment updates and Q2 financial results.

Speaker #3: Furthermore, we continue to evaluate opportunities for additional grid-connected and behind-the-meter expansion sites globally, across both new and existing sites. Our objective is straightforward: continue acquiring, building, and converting power infrastructure.

Speaker #3: We will share updates on our progress here when appropriate. I will now turn the call over to Michael, to walk through our business segment updates and second quarter financial results.

Haris Basit: We will share updates on our progress here when appropriate. I will now turn the call over to Michael to walk through our business segment updates and Q2 financial results.

Speaker #2: Thank you, Harris, and good morning. I'm happy to join everyone for the first time as Bitdeer CFO. Execution remains our top priority, while the TIDO lease that Harris described has now been executed. There is significant work ahead to prepare for the first RFS date.

Michael Potter: Thank you, Harris, good morning. I'm happy to join everyone for the first time as Bitdeer's CFO. Execution remains our top priority. While the Tidal lease that Harris described has now been executed, there is significant work ahead to prepare for the first RFS date. We will update as appropriate as those milestones are achieved. The focus in our view is on the quality of altered demand, robustness of the financing structure, and contractual protections. We believe this transaction compares very favorably on these dimensions, and we look forward to demonstrating that through continued execution. Looking ahead, we see plenty of interest in various sites within our portfolio that could potentially be used as AI HPC data centers. A key advantage of our model is the ability to utilize capacity for crypto mining until an AI data center is ready, ensuring our power assets remain productive and secured.

Speaker #2: We will update as appropriate as those milestones are achieved. The focus, in our view, is on the quality of altered demand, robustness of the financing structure, and contractual protections.

Speaker #2: We believe this transaction compares very favorably on these dimensions, and we look forward to demonstrating that through continued execution. Looking ahead, we see plenty of interest in various sites within our portfolio that could potentially be used as AI/HPC data centers.

Michael Potter: We believe this transaction compares very favorably on these dimensions, and we look forward to demonstrating that through continued execution. Looking ahead, we see plenty of interest in various sites within our portfolio that could potentially be used as AI HPC data centers. A key advantage of our model is the ability to utilize capacity for crypto mining until an AI data center is ready, ensuring our power assets remain productive and secured.

Speaker #2: A key advantage of our model is the ability to utilize capacity for crypto mining until an AI data center is ready, ensuring our power assets remain productive and secure.

Speaker #2: Turning to our Bitcoin mining business, self-mining hash rate reached approximately 73 exahash per second at the end of the second quarter, up approximately 342% year over year, supported by approximately 243,000 active self-mining rigs.

Michael Potter: Turning to our Bitcoin mining business. Self-mining hash rate reached approximately 73 exahash per second at the end of Q2, up approximately 342% year-over-year, supported by approximately 243,000 active self-mining rigs. This is an increase of approximately 113% year-over-year. We mined 783 Bitcoin in April, 921 Bitcoin in May, and 990 Bitcoin in June. Total Q2 production was approximately 2,694 Bitcoin, an increase of approximately 377% year-over-year. Our co-mining hash rate also continued to accelerate meaningfully during the quarter. This reflects our continued deployment of SEALMINERs into third-party facilities. It grew over 260% sequentially. We believe our combination of self-mining, co-mining, and hosting gives us multiple channels to monetize our growing SEALMINER production. We have the flexibility to allocate hardware to the channel that offers the best returns as market conditions evolve.

Speaker #2: This is an increase of approximately 113% year over year. We mined 783 Bitcoin in April, 921 Bitcoin in May, and 990 Bitcoin in June.

Speaker #2: Total second quarter production was approximately 2,694 Bitcoin, an increase of about 377% year over year. Our co-mining hash rate also continued to accelerate meaningfully during the quarter. This reflects our continued deployment of S19 miners into third-party facilities.

Michael Potter: Our co-mining hash rate also continued to accelerate meaningfully during the quarter. This reflects our continued deployment of SEALMINERs into third-party facilities. It grew over 260% sequentially. We believe our combination of self-mining, co-mining, and hosting gives us multiple channels to monetize our growing SEALMINER production. We have the flexibility to allocate hardware to the channel that offers the best returns as market conditions evolve.

Speaker #2: It grew over 260% sequentially. We believe our combination of self-mining, co-mining, and hosting gives us multiple channels to monetize our growing SEAL miner production. We have the flexibility to allocate hardware to the channel that offers the best returns as market conditions evolve.

Speaker #2: Our Sealminer platform continues to reinforce our structural cost advantage. The commercial launch of our A4 Ultra Hydro unit, operating at 9.45 joules per terahash at the chip level, continues to lower our internal cost per exahash.

Michael Potter: Our SEALMINER platform continues to reinforce our structural cost advantage. The commercial launch of our A4 Ultra Hydro unit, operating at 9.45 joules per terahash at the chip level, continues to lower our internal cost per exahash. During the quarter, we also launched the SEALMINER DL1 Hydro, our first machine designed for Scrypt algorithm mining. This broadens our product line beyond Bitcoin-focused hardware. Our internal manufacturing capability means that we're not subject to third-party markups when deploying SEALMINER rigs into our own fleet. This remains a structural cost advantage relative to other mining operators. In July, we broke ground on our first US-based manufacturing site, a 187,000-square-foot SEALMINER manufacturing facility in Sparks, Nevada. This is expected to be completed by the end of 2026 and will be capable of producing 10,000 units per month. It's expected to create approximately 70 high-quality local jobs.

Speaker #2: During the quarter, we also launched the Sealminer DL1 Hydro, our first machine designed for Scrypt algorithm mining. This broadens our product line beyond Bitcoin-focused hardware.

Speaker #2: Our internal manufacturing capability means that we're not subject to third-party markups when deploying SEALMINER rigs into our own fleet. This remains a structural cost advantage relative to other mining operators.

Michael Potter: Our internal manufacturing capability means that we're not subject to third-party markups when deploying SEALMINER rigs into our own fleet. This remains a structural cost advantage relative to other mining operators. In July, we broke ground on our first US-based manufacturing site, a 187,000-square-foot SEALMINER manufacturing facility in Sparks, Nevada. This is expected to be completed by the end of 2026 and will be capable of producing 10,000 units per month. It's expected to create approximately 70 high-quality local jobs.

Speaker #2: In July, we broke ground on our first US-based manufacturing site, a 187,000-square-foot Sealminer manufacturing facility in Sparks, Nevada. This is expected to be completed by the end of 2026 and will be capable of producing 10,000 units per month.

Speaker #2: It is expected to create approximately 70 high-quality local jobs. At the miscellaneous Ohio site, we have 174 megawatts of capacity currently online for mining.

Michael Potter: At the Massillon, Ohio site, we have 174 MW of capacity currently online for mining, with reconstruction of two previously fire-damaged buildings underway. A significant portion of that cost has been recovered through supplier insurance coverage. We believe the associated capacity to be energized in phases during Q3. In June, we broke ground on our Fox Creek, Alberta site, a $155 million investment. It includes a fully permitted 101-MW on-site natural gas power plant with grid interconnection. The site uses a closed-loop dry cooling system. Alberta's Bring Your Own Generation framework gives us the flexibility to curtail compute workloads and sell power back to the grid. Our AI business continued to scale during the quarter. AI Cloud annual recurring revenue reached approximately $76 million at the end of June, an increase of approximately 77% quarter-over-quarter. Utilization was approximately 95% across 4,248 deployed GPUs.

Speaker #2: With reconstruction of two previously fire-damaged buildings underway, a significant portion of that cost has been recovered through supplier insurance coverage. We believe the associated capacity will be energized in phases during the third quarter.

Speaker #2: In June, we broke ground on our Fox Creek, Alberta site, a $155 million investment. It includes a fully permitted, 101-megawatt on-site natural gas power plant with grid interconnection.

Speaker #2: The site uses a closed-loop dry cooling system. Alberta's Bring Your Own Generation framework gives us the flexibility to curtail compute workloads and sell power back to the grid.

Michael Potter: The site uses a closed-loop dry cooling system. Alberta's Bring Your Own Generation framework gives us the flexibility to curtail compute workloads and sell power back to the grid. Our AI business continued to scale during the quarter. AI Cloud annual recurring revenue reached approximately $76 million at the end of June, an increase of approximately 77% quarter-over-quarter. Utilization was approximately 95% across 4,248 deployed GPUs.

Speaker #2: Our AI business continues to scale during the quarter. AI cloud, annual recurring revenue reached approximately 76 million dollars at the end of June, an increase of approximately 77% quarter over quarter, utilization was approximately 95% across 4,248 deployed GPUs.

Speaker #2: We also signed a new 10-year lease for 21.7 IT megawatts of capacity in Malaysia, with handover expected in the first quarter of 2027. It is designed to support 128 NVIDIA GB300 NVL72 systems.

Michael Potter: We also signed a new 10-year lease for 21.7 IT MW of capacity in Malaysia, with handover expected in Q1 2027. It is designed to support 128 NVIDIA GB200 NVL72 systems. On the product side, we deployed NVIDIA's Nemotron-3 model onto our Bitdeer AI Model Studio on the first day of its launch. Turning to our financial results. Q2 revenue was approximately $228.8 million, an increase of approximately 47% year-over-year, and approximately 21% sequentially. The year-over-year growth was driven primarily by the continued expansion of our self-mining hash rate and the associated increase in Bitcoin production, along with accelerating contribution from our AI Cloud business, which contributed $14 million, an increase of approximately 284% sequentially. Total gross profit was -$8.5 million, with a gross margin of approximately -3.7%.

Speaker #2: On the product side, we deployed NVIDIA's Nemotron 3 model onto our Bitdeer AI Model Studio on the first day of its launch. Turning to our financial results:

Speaker #2: Second quarter revenue was approximately $228.8 million, an increase of approximately 47% year over year and approximately 21% sequentially. The year-over-year growth was driven primarily by the continued expansion of our self-mining hash rate and the associated increase in Bitcoin production.

Michael Potter: The year-over-year growth was driven primarily by the continued expansion of our self-mining hash rate and the associated increase in Bitcoin production, along with accelerating contribution from our AI Cloud business, which contributed $14 million, an increase of approximately 284% sequentially. Total gross profit was -$8.5 million, with a gross margin of approximately -3.7%.

Speaker #2: Along with accelerating contribution from our AI Cloud business, which contributed $14 million, an increase of approximately 284% sequentially. Total gross profit was negative $8.5 million, with a gross margin of approximately negative 3.7%.

Michael Potter: Importantly, this represents a $30.5 million sequential improvement that demonstrates the operating leverage of our vertically integrated model. This recovery was driven by two key factors, normalized seasonal power costs, which dropped approximately 15% sequentially, and an improvement in our blended fleet efficiency to 15.8 joules per terahash. On a year-over-year basis, our gross margins reflect continued but moderating pressure from the additional depreciation expense from our expanding mining fleet and the still challenging hash price environment. Adjusted EBITDA was approximately $31.1 million, an increase of approximately 575% over the year and approximately 116% sequentially. This sequential improvement illustrates the operating leverage of our vertically integrated model, as both hash price and power cost dynamics continue to stabilize. Operating loss in the quarter was $101.7 million, and net loss per share was $0.37. Turning to the balance sheet and cash flow.

Speaker #2: Importantly, this represents a 30.5 million dollars sequential improvement that demonstrates the operating leverage of our vertically integrated model. This recovery was driven by two key factors: normalized seasonal power costs, which dropped approximately 15% sequentially, and an improvement in our blended fleet efficiency to 15.8 joules per terahash.

Speaker #2: On a year-over-year basis, our gross margins reflect continued, but moderating, pressure from the additional depreciation expense from our expanding mining fleet, and the still challenging hash price environment.

Speaker #2: Adjusted EBITDA was approximately 31.1 million dollars, an increase of approximately 575% over the year and approximately 116% sequentially. This sequential improvement illustrates the operating leverage of our vertically integrated model as both hash price and power cost dynamics continue to stabilize, operating loss in the quarter was 101.7 million dollars, and net loss per share was 37 cents.

Michael Potter: Adjusted EBITDA was approximately $31.1 million, an increase of approximately 575% over the year and approximately 116% sequentially. This sequential improvement illustrates the operating leverage of our vertically integrated model, as both hash price and power cost dynamics continue to stabilize. Operating loss in the quarter was $101.7 million, and net loss per share was $0.37. Turning to the balance sheet and cash flow.

Speaker #2: Turning to the balance sheet and cash flow, net cash used in operating activities was approximately $158.5 million, an improvement of approximately $188 million sequentially.

Michael Potter: Net cash used in operating activities was approximately $158.5 million, an improvement of approximately $188 million sequentially. This was driven by the capitalization of SEALMINER-related inventory to PP&E as we're allocating those rigs for internal use. We ended the quarter with approximately $496 million in cash equivalents, and restricted cash, compared to approximately $298 million at the end of Q1. Total long-term debt was approximately $1.8 billion, a reduction of approximately $78 million sequentially. The increase in cash primarily reflects $457 million in proceeds from our at-the-market equity program during the quarter. We view this as a prudent capital raise, establishing the liquidity reserve necessary to execute on our AI HPC pipeline, powered land acquisition priorities, and to help ensure that our Tydal site progresses on schedule.

Speaker #2: This was driven by the capitalization of Sealminer-related inventory, the PP&E, as we're allocating those rigs for internal use. We ended the quarter with approximately $496 million in cash, cash equivalents, and restricted cash, compared to approximately $298 million at the end of the first quarter.

Speaker #2: Total long-term debt was approximately $1.8 billion, a reduction of approximately $78 million sequentially. The increase in cash primarily reflects $457 million in proceeds from our at-the-market equity program during the quarter.

Michael Potter: Total long-term debt was approximately $1.8 billion, a reduction of approximately $78 million sequentially. The increase in cash primarily reflects $457 million in proceeds from our at-the-market equity program during the quarter. We view this as a prudent capital raise, establishing the liquidity reserve necessary to execute on our AI HPC pipeline, powered land acquisition priorities, and to help ensure that our Tydal site progresses on schedule.

Speaker #2: Review this as a prudent capital raise, establishing the liquidity reserve necessary to execute on our AI and HPC pipeline, power land acquisition priorities, and to help ensure that our Titao site progresses on schedule.

Speaker #2: Today, we filed a new shelf registration statement since our previous shelf, which was about a year and a half old, had largely used up its capacity.

Michael Potter: Today, we filed a new shelf registration statement since our previous shelf, which was about a year and a half old, had largely used up its capacity. We now qualify as a well-known seasoned issuer, which makes us eligible for automatic shelf registration. Considering the increased size and scale of our business, we also filed a prospective supplement to move our existing ATM program to the new shelf and take down $1 billion for offering under that program. Looking ahead, we expect to broaden our sources of capital, with much of our remaining 2026 financing needs to be met through project-level debt financing, anchored by our previously discussed goals of accessing the debt markets for Tydal. We expect this debt financing will also unlock significant incremental liquidity to support our broader AI/HPC pipeline.

Speaker #2: We now qualify as a well-known seasoned issuer, which makes us eligible for automatic shelf registration. Considering the increased size and scale of our business, we also filed a prospectus supplement to move our existing ATM program to the new shelf and take down $1 billion for offering under that program.

Speaker #2: Looking ahead, we expect to broaden our sources of capital, with much of our remaining 2026 financing needs to be met through project-level debt financing.

Michael Potter: Looking ahead, we expect to broaden our sources of capital, with much of our remaining 2026 financing needs to be met through project-level debt financing, anchored by our previously discussed goals of accessing the debt markets for Tydal. We expect this debt financing will also unlock significant incremental liquidity to support our broader AI/HPC pipeline.

Speaker #2: Anchored by our previously discussed goals of accessing the debt markets for Tito, we expect this debt financing will also unlock significant incremental liquidity to support our broader AI/HPC pipeline.

Speaker #2: Our preference is to prioritize non-dilutive, project-level financing over equity issuance wherever the underlying contracted cash flow supports it. Consistent with this, in Q2, our Bitcoin wafer spend was funded entirely through cash generated by our mining operations and debt collateralized by our wafer bank, not equity issuance.

Michael Potter: Our preference is to prioritize non-dilutive project-level financing over equity issuance wherever the underlying contracted cash flows support it. Consistent with this, in Q2, our Bitcoin wafer spend was funded entirely through cash generated by our mining operations and debt collateralized by our wafer bank, not equity issuance. In terms of guidance, we're revising our full-year crypto mining infrastructure capital expenditures to $200 million to $280 million, driven by additional infrastructure development opportunities we see in North America. As a reminder, this guidance excludes CapEx for SEALMINER hardware, GPUs, Bitdeer AI Cloud, or co-location development. On expenses, we continue to actively manage our overhead as we scale the organization to support our expanding co-location and Bitdeer AI Cloud businesses alongside our core mining and ASIC manufacturing operations. We expect our general administrative expense run rate in H2 to reflect the incremental headcount and infrastructure needed to support that growth.

Speaker #2: In terms of guidance, we're revising our full-year crypto mining infrastructure capital expenditures to $200 million to $280 million, driven by additional infrastructure development opportunities we see in North America.

Speaker #2: As a reminder, this guidance excludes capex for SEAL miner hardware, GPUs, AI cloud, or co-location development. On expenses, we continue to actively manage our overhead as we scale the organization to support our expanding co-location and AI cloud businesses, alongside our core mining and ASIC manufacturing operations.

Michael Potter: As a reminder, this guidance excludes CapEx for SEALMINER hardware, GPUs, Bitdeer AI Cloud, or co-location development. On expenses, we continue to actively manage our overhead as we scale the organization to support our expanding co-location and Bitdeer AI Cloud businesses alongside our core mining and ASIC manufacturing operations. We expect our general administrative expense run rate in H2 to reflect the incremental headcount and infrastructure needed to support that growth.

Speaker #2: And we expect our general administrative expense run rate in the second half to reflect the incremental headcount and infrastructure needed to support that growth.

Speaker #2: To summarize, the second quarter was a solid quarter for Bitdeer. In the past few months, we have clearly demonstrated our ability to deliver against our HPC/AI objectives.

Michael Potter: To summarize, Q2 was a solid quarter for Bitdeer. In the past few months, we have clearly demonstrated our ability to deliver against our HPC/AI objectives. We executed our first major AI infrastructure co-location lease agreement at Tydal, officially launching our co-location data center business as a core pillar of our company. We reached this milestone on compelling terms and with a partner, Volta, we are excited to work with. Our underlying power portfolio continues to scale. Our Bitdeer AI Cloud business is demonstrating strong momentum, and our Bitcoin mining and SEALMINER platforms illustrates the benefits of vertical integration. Thank you for joining us this morning. Operator, please open the call for questions.

Speaker #2: We executed our first major AI infrastructure co-location lease agreement at Tito, officially launching our co-location data center business as a core pillar of our company.

Speaker #2: We reached this milestone on compelling terms and with the partner Volta, whom we are excited to work with. Our underlying power portfolio continues to scale, our AI cloud business is demonstrating strong momentum, and our Bitcoin mining and Sealminer platforms illustrate the benefits of vertical integration.

Michael Potter: We reached this milestone on compelling terms and with a partner, Volta, we are excited to work with. Our underlying power portfolio continues to scale. Our Bitdeer AI Cloud business is demonstrating strong momentum, and our Bitcoin mining and SEALMINER platforms illustrates the benefits of vertical integration. Thank you for joining us this morning. Operator, please open the call for questions.

Speaker #2: Thank you for joining us this morning. Operator, please open the call for questions.

Speaker #1: Thank you. Please send a reminder to the gentlemen to ask a question at this time. You will need to press *11 on your telephone and wait for your name to be announced.

Operator: Thank you. Ladies and gentlemen, as a reminder, to ask a question at this time, you will need to press star one one on your touchtone telephone and wait for your name to be announced. Please stand by while we compile the queue in roster. Our first question coming from the lineup, Nick Giles with B. Riley Securities. Your line is now open.

Speaker #1: Please stand by while we compile the Q&A roster. Our first question, coming from the lineup: Nick Charles with B. Riley Securities, your line is now open.

Speaker #3: Yeah, thanks, operator. Good morning, everyone. Guys, congrats on getting the first deal done here. You spoke to the pipeline and globally. I was just hoping you could frame up some of the opportunities you're seeing outside of the US, and how near-term these opportunities could be.

Nick Giles: Yeah, thanks, operator. Good morning, everyone. Guys, congrats on getting the first deal done here. You spoke to the pipeline and looking at new opportunities globally. I was just hoping you could frame up kind of some of the opportunities you're seeing outside of the US, how near-term these opportunities could be. Thanks very much.

Speaker #3: Thank you very much.

Michael Potter: I want to make sure I understand your question. You want to know what our opportunities are outside the US?

Haris Basit: I want to make sure I understand your question. You want to know what our opportunities are outside the US?

Speaker #4: I want to make sure I understand your question. You want to know what our opportunities are outside the U.S.?

Speaker #3: Exactly, yeah. I'm just hoping to get a better sense of the pipeline ex-US—how many megawatts are you assessing today, and what’s the earliest that some of these megawatts could be brought online?

Nick Giles: Exactly, yeah. Just hoping to get a better sense for the pipeline ex-US. How many megawatts are you assessing today, and what's the earliest that some of these megawatts could be brought online?

Speaker #4: So, I'm sure Jihan could give some additional color on this, but we do have a lot of large, Asia-based potential customers that are slowly starting to turn online.

Michael Potter: I'm sure Jihan could give some additional color on this, but we do have a lot of large Asia-based potential customers that are slowly starting to turn online. Our existing GPUs in Asia are quite used up, and we're expecting to add more capacity as customers come online. I don't know if Jihan has anything additionally he wants to talk about.

Haris Basit: I'm sure Jihan could give some additional color on this, but we do have a lot of large Asia-based potential customers that are slowly starting to turn online. Our existing GPUs in Asia are quite used up, and we're expecting to add more capacity as customers come online. I don't know if Jihan has anything additionally he wants to talk about.

Speaker #4: Our existing GPUs in Asia are quite used up, and we're expecting to add more capacity as customers come online. I don't know if Jihan has anything additional you want to talk about.

Speaker #5: I'm from the GPU department. I think in the near future, mostly it's in Malaysia. We have a data center already signed up, and we also have other opportunities in active discussion.

Jihan Wu: On the GPU deployment, I think in the near future, mostly it's in Malaysia. We have data center already signed up, we also have other opportunities in active discussion. The demand side is also very strong. Usually, it is multi-year and highly profitable contract. The bottleneck right now is our execution. We are quite busy on execute those AI cloud contract these days in Malaysia. Norway will be the next. We reserved 15 MW. A little bit less than 15 MW, I think now in Norway ourselves. That will be a little bit later than in Malaysia. It is expected within next year. We will have some of our US data center activated, like in Tennessee and Washington.

Speaker #5: And the demand side is also very strong. And not only is it multi-year, but it's also a highly profitable contract. The bottleneck right now is our execution.

Speaker #5: So we are quite busy executing those AI colocation contract businesses in Malaysia. And then Norway will be the next. We reserved like 15 megawatts, a little bit less than 15 megawatts.

Jihan Wu: Norway will be the next. We reserved 15 MW. A little bit less than 15 MW, I think now in Norway ourselves. That will be a little bit later than in Malaysia. It is expected within next year. We will have some of our US data center activated, like in Tennessee and Washington.

Speaker #5: I can note that in Norway, ourselves, that will be a little bit later than in Malaysia. And it is expected within next year. And then we will have some of our U.S. data centers activated, like in Tennessee and Washington.

Speaker #3: Thanks for that. No, that's helpful. Would you consider any new sites outside of the US for co-location purposes, or are you seeing any opportunities for expansion in your European footprint on the co-location side?

Nick Giles: Thanks for that. No, that's helpful. Would you consider any new sites outside of the US for co-location purposes, or are you seeing any opportunities for expansion in your European footprint on the co-location side?

Jihan Wu: We are actively looking for other power assets opportunities in Europe. Since we haven't done any deal yet, I think it's too early to really talk about our plan in Europe. Right now, our focus should be on execute the deal in Tydal. I think that's very important for us. If we can execute that, we will generate revenue and cash flows. It will also generate kind of credibility of our data center executions. I think that's super important for us right now.

Speaker #5: No, we are actively looking for other partners, assets, and opportunities in Europe. But since we haven't done any deals yet, I think it's too early to really talk about our plans in Europe.

Speaker #5: And right now, our focus should be on executing the deal in Tito. I think that's very important for us. If we can execute that, we will generate revenue and cash flows.

Speaker #5: I think that’s, and it will also generate kind of credibility for our data center executions. So, I think that’s super important for us right now.

Speaker #3: Understood. And then maybe one more, if I could. I saw, if I read correctly, just at the Knoxville site, there was a full redesign of the project, and I believe the ready-for-service time was slightly pushed out.

Nick Giles: Understood. Maybe one more if I could. I saw, if I read correctly, just at the Knoxville site, there was a full redesign of the project, and I believe ready-for-service time was slightly pushed out. Can you just talk about, maybe provide some additional background on what drove that? Was that potential customer driven? Was that to kind of better fit NVIDIA architectures? What was the reason for that?

Speaker #3: Can you just talk about, maybe provide some additional background on what drove that? Was that potential customer-driven? Was that to kind of better fit NVIDIA architectures?

Speaker #3: What was the reason for that?

Speaker #4: I don't know if you want to talk about that, Harris, or if you want me to jump in on it.

Michael Potter: I don't know if you want to talk about that, Haris, or you want me to jump in on it.

Jihan Wu: I think probably best for you, Michael.

Haris Basit: I think probably best for you, Michael.

Speaker #2: I think it's probably best for you, Michael.

Speaker #4: So, when we have been going to market and looking at the requirements around our Tito Norway site, originally we had expected Tennessee to be two different projects, but the market demand is more for a single, more monolithic amount of megawatts offered in one place.

Michael Potter: When we have been going to market and looking at the requirements around our Tydal, Norway site, originally, we had expected Tennessee to be two different projects. The market demand is more for a single, more monolithic amount of megawatts offered in one place. We redesigned it, instead of having two separate smaller sites inside our bigger site to just be one data hall complex. That was the redesign we did, and it's reflected from the discussions we've had with potential customers and what their requirements are.

Speaker #4: So we redesigned it instead of having two separate smaller sites inside our bigger site, to just be one data hall complex. So that was the redesign we did, and it's reflected on the from the discussions we've had with potential customers and what their requirements are.

Jihan Wu: Yeah. The expectation actually aligns with the second phase. There will be no phase one, phase two. It's only one phase. It will all be online and at the same time. If we look at the expected phase two, I think that's actually not pushed out a lot, but there will be no phase one early activation.

Speaker #5: And the expectation actually aligns with the second of us. So there will be no phase one, phase two—there's only one phase, and it will all be online at the same time.

Speaker #5: So if we look at the expected phase two, I think that's actually not pushed out a lot, but there will be low phase one.

Speaker #5: Early activation.

Nick Giles: Got it. That's very clear. Well, guys, I appreciate the update. I'll turn it over. Nice work.

Speaker #3: Got it. That's very clear. Okay. Well, guys, I appreciate the update. I'll turn it over, but nice work.

Speaker #1: Thank you. Our next question in the queue is coming from the lineup. Mike Randall with Northland Capital, your line is now open.

Operator: Thank you. Our next question in queue coming from the line of Mike Condal with Nordland Capital. Your line is now open.

Speaker #6: Hey, guys. Thank you. Could you spend a minute on how you decided on Volta and kind of what maybe their ultimate demand is? And then, secondly, Rockdale and Clarington—what are the next steps at both of those sites?

Mike Condal: Hey, guys. Thank you. Could you spend a minute on how you decided on Volta and kind of what maybe their ultimate demand is? Secondly, Rockdale and kind of Clarington, what are next steps at both of those sites? Thank you.

Mike Grondahl: Hey, guys. Thank you. Could you spend a minute on how you decided on Volta and kind of what maybe their ultimate demand is? Secondly, Rockdale and kind of Clarington, what are next steps at both of those sites? Thank you.

Speaker #6: Thank you.

Speaker #2: Maybe I'll start with the Volta side, and then I can have Michael or Jihan speak to the other sites. So, why we chose Volta was really because they have done a great job, actually, in finding innovative ways of addressing this business in both the capital markets, the customers that they have obtained, and their contracts with the customers.

Michael Potter: Maybe I'll start with the Volta side. Can have Michael or Jihan speak to the other sites. Why we chose Volta was really, they have done a great job, actually, in finding innovative ways of addressing this business in both the capital markets, the customer that they have obtained, and their contracts with the customer. They also were able to move rapidly, which is something that we wanted to see at the Tydal site since that site is coming online in just a few months. In general, the commercial terms were also very favorable. We thought that they were the right choice for us at the Tydal site. Their ultimate demand can be much larger, but of course, they're just getting started. The initial lease is for 121 IT megawatts.

Haris Basit: Maybe I'll start with the Volta side. Can have Michael or Jihan speak to the other sites. Why we chose Volta was really, they have done a great job, actually, in finding innovative ways of addressing this business in both the capital markets, the customer that they have obtained, and their contracts with the customer.

Speaker #2: They also were able to move rapidly, which is something that we wanted to see at the Tito site, since that site is coming online in just a few months.

Haris Basit: They also were able to move rapidly, which is something that we wanted to see at the Tydal site since that site is coming online in just a few months. In general, the commercial terms were also very favorable. We thought that they were the right choice for us at the Tydal site. Their ultimate demand can be much larger, but of course, they're just getting started. The initial lease is for 121 IT megawatts.

Speaker #2: And in general, the commercial terms were also very favorable. So we thought that they were the right choice for us at the Tito site.

Speaker #2: Their ultimate demand can be much larger, but of course, they're just getting started, and so the initial lease is for 121 IT megawatts.

Speaker #6: Got it. Then just an update on next steps at Rockdale and Clarington.

Mike Condal: Got it. Just an update on next steps at Rockdale and Clarington.

Mike Grondahl: Got it. Just an update on next steps at Rockdale and Clarington.

Speaker #4: I don't know if Jihan wants to add some further color, but we're continuing to build out the power infrastructure as per our previously discussed timeline in Rockdale.

Michael Potter: I don't know if Jihan wants to add some further color, but we're continuing to build out the power infrastructure, as per our previously discussed timeline in Rockdale. That was something that was predating the batch zero or the allocation of the power in the site. We're preparing in the background what we believe we need to do if we want to do an AI data center at that site. Clarington, we're developing it for crypto mining right now. The power is available coming up soon, we'd like to be able to make sure we use it fully. There's no big update on the lawsuit in Clarington now. The motion to dismiss that we had filed was turned down by the judge, which is pretty common in these pre-trial things, it's gone into discovery now.

Haris Basit: I don't know if Jihan wants to add some further color, but we're continuing to build out the power infrastructure, as per our previously discussed timeline in Rockdale. That was something that was predating the batch zero or the allocation of the power in the site. We're preparing in the background what we believe we need to do if we want to do an AI data center at that site.

Speaker #4: That was something that was predating the Bachelor, or the allocation of the power in the site. And we're preparing in the background what we believe we need to do if we want to do an AI data center at that site.

Speaker #4: Clarington—we're developing it for crypto mining right now. The power is available and coming up soon, and we'd like to be able to make sure we use it fully.

Haris Basit: Clarington, we're developing it for crypto mining right now. The power is available coming up soon, we'd like to be able to make sure we use it fully. There's no big update on the lawsuit in Clarington now. The motion to dismiss that we had filed was turned down by the judge, which is pretty common in these pre-trial things, it's gone into discovery now. We continue to believe that the lawsuit doesn't have any merit, we continue to work on that.

Speaker #4: There's no big update on the lawsuit in Clarington right now. The motion to dismiss that we had filed was turned down by the judge, which is pretty common in these pre-trial things.

Speaker #4: And it's gone into discovery now. We continue to believe that the lawsuit doesn't have any merit, and we continue to work on that.

Michael Potter: We continue to believe that the lawsuit doesn't have any merit, we continue to work on that.

Speaker #6: Got it. Okay. Thank you.

Mike Condal: Got it. Okay. Thank you.

Mike Grondahl: Got it. Okay. Thank you.

Speaker #1: Thank you. Our next question comes from the lineup: Kevin Cassidy with Rosenblatt Securities. Your line is now open.

Operator: Thank you. Our next question coming from the line of Kevin Cassidy with Rosenblatt Securities. Your line is now open.

Speaker #7: Yeah. Thanks for taking my question, and congratulations on landing Volta. Two things on that. Well, maybe with the Texas government putting a pause on new data center grid connections—maybe Harris, you might have touched on that—but how does that affect your colocation opportunities in Texas?

Kevin Cassidy: Yeah, thanks for taking my question, and congratulations on landing Volta. Two things on that. Well, maybe with the Texas government putting a pause on the new data center grid, maybe Haris, you might have touched on that, but how does that affect your co-location opportunities in Texas?

Speaker #2: Michael, do you want to answer that one?

Jihan Wu: Michael, do you want to answer that one?

Haris Basit: Michael, do you want to answer that one?

Speaker #4: It's still a little bit early to make strong comments on that because the actual criteria haven't come out yet. The one big site we have in Texas, which is Rockdale—that site, all the activity there is pre-batch zero and not related to that that we're working on.

Michael Potter: It's still a little bit early to make strong comments on that because the actual criteria haven't come out yet. The one big site we have in Texas, which is Rockdale, that site, all the activity there is pre-batch zero and not related to that that we're working on. As the actual news gets out and the criteria come out, I think we'll be in a better position to be more specific in our comments.

Speaker #4: As the actual news gets out and the criteria come out, I think we'll be in a better position to be more specific in our comments.

Speaker #7: Okay. Great. And with both those large neocloud and worldwide, is there a chance to just expand your relationship with them to other sites?

Kevin Cassidy: Okay, great. With Volta, a large neocloud and worldwide, is there a chance to just expand your relationship with them to other sites?

Speaker #2: I mean, there is that potential, of course, with Volta, but we haven't released any information on that yet.

Michael Potter: I mean, there is that potential, of course, with Volta, but we haven't released any information on that yet.

Speaker #7: Okay. Maybe I'll ask one other is how should we be modeling seal miner rigs going forward? And for external sales.

Kevin Cassidy: Okay. Maybe I'll ask one other, is that how should we be modeling SEALMINER rigs going forward and for external sales?

Speaker #4: So right now, the existing wafer inventory that we have, we've designated for internal use. With the very challenging hash rate and our desire to expand our ability to do self-mining and coal mining, we made the decision to use it internally.

Michael Potter: Right now, the existing wafer inventory that we have, we've designated for internal use. With the very challenging hash rate and our desire to expand our ability to do self-mining and co-mining, we made the decision to use it internally. We have the capability and the capacity to deploy it, and that's the best way to get that working and earning us some cash. It is an example of our model being extremely flexible in that we do have a fair amount of powered land that's in earlier stages of development for other uses that we can quickly deploy cryptocurrency mining into it and make sure we generate cash off the power. Also, if you keep using the power, it's less likely that the utility will try and move it away from the land.

Speaker #4: We have the capability and the capacity to deploy it, and that's the best way to get that working and earning us some cash. It is an advantage an example of our model being extremely flexible in that we do have a fair amount of powered land that's in earlier stages of development for other uses that we can quickly deploy cryptocurrency mining into it and make sure we generate cash off the power.

Michael Potter: It is an example of our model being extremely flexible in that we do have a fair amount of powered land that's in earlier stages of development for other uses that we can quickly deploy cryptocurrency mining into it and make sure we generate cash off the power. Also, if you keep using the power, it's less likely that the utility will try and move it away from the land. It's important that we can quickly react when we do get land into our portfolio and use it, and the crypto mining that we do is a big advantage there.

Speaker #4: Also, if you keep using the power, it's less likely that the utility will try and move it away from the land. So it's important that we can quickly react when we do get land into our portfolio and use it in the crypto mining that we do as a big advantage there.

Michael Potter: It's important that we can quickly react when we do get land into our portfolio and use it, and the crypto mining that we do is a big advantage there.

Speaker #7: Okay. Great strategy. Thank you.

Kevin Cassidy: Okay. Great strategy. Thank you.

Speaker #1: Thank you. Our next question in the queue is coming from the line of John Tadaro with Needham. Your line is now open.

Operator: Thank you. Our next question in queue coming from the line of John Todaro with Needham. Your line is now open.

John Todaro: Hey, guys, thanks for taking my question, and congrats on the lease. First question, just as it relates to the lease, it was 133 gross megawatts signed. I think we have that site going for 225. Just trying to understand why Volta didn't go for the full amount, and are you keeping some for cloud? If so, I guess why and the strategy there? I have a follow-up.

Speaker #5: Hey, guys. Thanks for taking my question in congrats on the lease. First question, just as it relates to the lease, it was 133 gross megawatt side.

Speaker #5: I think we have that site going for $225. Just trying to understand why Volta didn't go for the full amount, and are you keeping some for cloud?

Speaker #5: And if so, yeah, I guess why, and what's the strategy there? Then I have a follow-up.

Speaker #2: So the full amount of power there is actually 180 gross megawatts. And so of that 180 gross megawatts, so we're leasing 133 gross, which would be 121 IT megawatts to Volta.

Michael Potter: The full amount of power there is actually 180 gross megawatts. Of that 180 gross megawatts, we're leasing 133 gross, which would be 121 IT megawatts to Volta, and then retaining 47 megawatts gross for our own AI cloud use there. As you know, this market is dynamic. There's a lot of activity in both the co-location and AI cloud space. We think there's still a lot of opportunities for us in Norway with the 47 megawatts that we've retained, and we haven't made final decisions on exactly how that would be deployed and for whose benefit in terms of the ultimate tenants there. We think that's a significant potential upside for us, and we felt it would be beneficial for us to retain that power for ourselves.

Haris Basit: The full amount of power there is actually 180 gross megawatts. Of that 180 gross megawatts, we're leasing 133 gross, which would be 121 IT megawatts to Volta, and then retaining 47 megawatts gross for our own AI cloud use there. As you know, this market is dynamic. There's a lot of activity in both the co-location and AI cloud space.

Speaker #2: And then retaining 47 megawatts gross for our own AI cloud use there. So, as you know, this market is dynamic. There's a lot of activity in both the colocation and AI cloud space.

Speaker #2: We think there's still a lot of opportunities for us in Norway with the 47 megawatts that we've retained. And we haven't made final decisions on exactly how that would be deployed and for whose benefit.

Haris Basit: We think there's still a lot of opportunities for us in Norway with the 47 megawatts that we've retained, and we haven't made final decisions on exactly how that would be deployed and for whose benefit in terms of the ultimate tenants there. We think that's a significant potential upside for us, and we felt it would be beneficial for us to retain that power for ourselves.

Speaker #2: In terms of the ultimate tenants there, we think that's a significant potential upside for us, and we felt it would be beneficial for us to retain that power for ourselves.

John Todaro: Understood. Just one on the credit guarantee. We've seen some in the past where you have kind of a neocloud and your off-taker is an Anthropic-like entity, but there's still either the chip manufacturer or a hyperscaler involved in the credit guarantee. Can you just walk us through a bit more how that process worked and what maybe some of the other avenues you were looking at before ultimately settling on the way it's structured now?

Speaker #5: Understood. And then just one on the credit guarantee. We've seen some in the past where you have kind of a NeoCloud and your off-taker is like an Anthropic-like entity.

Speaker #5: But there's still either the chip manufacturer or a hyperscaler involved in the credit guarantee. I guess, can you just walk us through a bit more how that process worked and what maybe some of the other avenues you were looking at before ultimately settling on the way it's structured now?

Speaker #2: Yeah, so I don't want to speak about the alternatives that we looked at, since those are proprietary in many cases. But the letter of credit structure here, I think, is quite useful.

Michael Potter: I don't want to speak about the alternatives that we looked at since those are proprietary in many cases. The letter of credit structure here I think is quite useful, and it might be quite useful to the industry as a whole, because for the first time it has backing or credit backing from someone other than, as you said, someone who's a chip vendor or a hyperscaler. It opens up additional funding opportunities and it is a very high rating for letters of credit from the types of banks that we expect these letters of credit to come from. We know this is innovative and new to the industry, but we think it's going to be something that catches on.

Haris Basit: I don't want to speak about the alternatives that we looked at since those are proprietary in many cases. The letter of credit structure here I think is quite useful, and it might be quite useful to the industry as a whole, because for the first time it has backing or credit backing from someone other than, as you said, someone who's a chip vendor or a hyperscaler.

Speaker #2: And it might be quite useful to the industry as a whole, because, for the first time, it has backing—or credit backing—from someone other than, as you said, someone who's a chip vendor or a hyperscaler.

Speaker #2: So it opens up additional funding opportunities. And it is a very high level—a very high rating for letters of credit from the types of banks that we expect these letters of credit to come from.

Haris Basit: It opens up additional funding opportunities and it is a very high rating for letters of credit from the types of banks that we expect these letters of credit to come from. We know this is innovative and new to the industry, but we think it's going to be something that catches on.

Speaker #2: So we know this is innovative and new to the industry, but we think it's going to be something that catches on.

John Todaro: Okay. Understood. Thank you for that. Congrats again on the lease.

Speaker #5: Okay. Understood. Thank you for that. And congrats again on the lease.

Speaker #1: Thank you. Our next question in the queue comes from the line of Brett Knopflach with Kansas Fitzgerald. Your line is now open.

Operator: Thank you. Our next question in queue coming from the line of Brad Milbank with Canaccord Genuity. Your line is now open.

Speaker #6: Hi guys. Thank you for taking my question. And I guess I have a few. Harris, on the Tito lease, I think kind of talked about an additional $500 million of capex needed.

Brad Milbank: Hi, guys. Thank you for taking my question. I just have a few. Haris, on the Tydal lease, I think you kind of talked about an additional $500 million of CapEx needed. Curious how much money you guys have put into that site, excluding the additional CapEx you need.

Brett Knoblauch: Hi, guys. Thank you for taking my question. I just have a few. Haris, on the Tydal lease, I think you kind of talked about an additional $500 million of CapEx needed. Curious how much money you guys have put into that site, excluding the additional CapEx you need.

Speaker #6: Curious how much money you guys have put into that site called excluding the additional capex you need.

Speaker #2: Actually, let me ask Michael to answer that question for how much has actually been put in.

Michael Potter: Actually, let me ask Michael to answer that question for how much has actually been put in. I mean, we've put hundreds of millions of dollars of development into the site already, some of which has actually been spent around the AI data center and originally developing the site to be used as a cryptocurrency site. We made a reasonably significant investment in there in the past, which prepared us so that we could act very quickly when this opportunity came up. This is more of a brownfield or semi-developed site than a complete greenfield, so it allowed us to act very quickly and meet the timeline that Volta was hoping for.

Haris Basit: Actually, let me ask Michael to answer that question for how much has actually been put in.

Speaker #4: I mean, we've put hundreds of millions of dollars of development into the site already. Some of which is actually been spent around the AI data center and originally developing the site to be used as a cryptocurrency site.

Michael Potter: I mean, we've put hundreds of millions of dollars of development into the site already, some of which has actually been spent around the AI data center and originally developing the site to be used as a cryptocurrency site. We made a reasonably significant investment in there in the past, which prepared us so that we could act very quickly when this opportunity came up. This is more of a brownfield or semi-developed site than a complete greenfield, so it allowed us to act very quickly and meet the timeline that Volta was hoping for.

Speaker #4: So we made a reasonably significant investment in there in the past, which prepared us so that we could act very quickly when this opportunity came up.

Speaker #4: This is more of a brownfield or semi-developed site than a complete greenfield. So it allowed us to act very quickly and meet the timeline that Volta was hoping for.

Speaker #6: Understood. Thank you. And then just high level, how should we think about how you're going to allocate capital between maybe leasing some of the powered land you have and building your own AI or expanding your AI cloud business?

Brad Milbank: Understood. Thank you. Then just high level, how should we think about how you're going to allocate capital between maybe leasing some of the powered land you have and building your own AI or expanding your AI cloud business? If we think about Volta and your AI cloud, to some extent, they probably compete against each other. You're both selling compute. Is there a preference for you to want to be bigger on the cloud side? Is this going to be a mixed approach? How are you guys thinking of it internally?

Brett Knoblauch: Understood. Thank you. Then just high level, how should we think about how you're going to allocate capital between maybe leasing some of the powered land you have and building your own AI or expanding your AI cloud business? If we think about Volta and your AI cloud, to some extent, they probably compete against each other. You're both selling compute. Is there a preference for you to want to be bigger on the cloud side? Is this going to be a mixed approach? How are you guys thinking of it internally?

Speaker #6: I guess if we think about Volta and your AI cloud, to some extent, they probably compete against each other. You're both selling compute. Is there a preference for you to want to be bigger on the cloud side?

Speaker #6: Is this going to be a mixed approach? I guess, how are you guys thinking of it internally?

Speaker #4: I think Jihan can give some deeper color on that. But we're remaining flexible. If there's a good colocation deal that we feel is in the best interest of the company to do, we can still execute on something like that.

Michael Potter: I think Jihan can give some deeper color on that, but we're remaining flexible. If there's a good co-location deal that we feel it's in the best interest of the company to do, we can still execute on something like that. If we look at what we can do around owning the GPUs ourselves or providing the GPUs ourselves and serving a customer ourselves, that's something that we'd strongly consider as well. We haven't said that we're going to do one or the other as the exclusive way to do it.

Speaker #4: And if we look at what we can do around owning the GPUs ourselves, or providing the GPUs ourselves and serving a customer ourselves, that's something that we're strongly considering as well.

Speaker #4: We haven't said that we're going to do one or the other as the exclusive way to do it.

Brad Milbank: Mm-hmm. Awesome. Maybe if I could just follow up with one more. As I look at three gigs of existing power and power coming online over the next several quarters, I guess, is there a site that we should be focusing on that is most ready, or the next catalyst to either be leased or either to be converted or anything we should think about the future catalyst around here?

Brett Knoblauch: Mm-hmm. Awesome. Maybe if I could just follow up with one more. As I look at three gigs of existing power and power coming online over the next several quarters, I guess, is there a site that we should be focusing on that is most ready, or the next catalyst to either be leased or either to be converted or anything we should think about the future catalyst around here?

Speaker #6: Awesome. And then maybe if I could just follow up with one more. As I look at kind of three gigs of kind of existing power and power coming online over the next several quarters, I guess, is there a site that we should be focusing on that is kind of most ready or the next catalyst to either be leased or either to be converted?

Speaker #6: Or anything we should think about for future catalysts around here?

Speaker #4: I think Jihan talked about this a little bit earlier, that in Asia, we have ability to grow quickly in Malaysia. Because of the new site that we've signed up in Malaysia.

Michael Potter: I think Jihan talked about this a little bit earlier, that in Asia, we have ability to grow quickly in Malaysia because of the new site that we've signed up in Malaysia. In the very short term, I think Malaysia is the one you see the most activity on. If you look at the table we provide, Washington State and Tennessee are the two that are sort of designated specifically for that we're actively working on and doing construction and such. In terms of any soon news, those are two that are most likely to come out. The other sites, it's really depending on where we are with our discussions with customers and what we decide to turn on on that. As that happens, we'll make sure we'll update everybody.

Speaker #4: So in the very short term, I think Malaysia is the one you see the most activity on. If you look at the table we provide, Washington State and Tennessee, are the two that are sort of designated.

Speaker #4: Specifically for that. That we're actively working on and doing construction and such. So in terms of any soon news, those are two that are most likely to come out.

Michael Potter: In terms of any soon news, those are two that are most likely to come out. The other sites, it's really depending on where we are with our discussions with customers and what we decide to turn on on that. As that happens, we'll make sure we'll update everybody.

Speaker #4: The other sites really depend on where we are with our discussions with customers and what we decide to turn on there. As that happens, we'll make sure to update everybody.

Speaker #6: Awesome. Thank you, guys. I appreciate it.

Brad Milbank: Awesome. Thank you, guys. Appreciate it.

Brett Knoblauch: Awesome. Thank you, guys. Appreciate it.

Speaker #1: Thank you. Our next question in the queue comes from the line of Mike Collinsey with HC Wainwright. Your line is now open.

Operator: Thank you. Our next question in queue coming from the line of Mike Colonnese with H.C. Wainwright. Your line is now open.

Speaker #7: Hi. Good morning, guys. Congrats on the Tito deal. Great to see I have two first on the AI HVC business. So Harris, you touched on this a bit earlier, but I just wanted to follow up on it.

Mike Colonnese: Hi. Good morning, guys. Congrats on the Tidal deal. Great to see. I have two. First on the AI HPC business. Haris, you touched on this a bit earlier, I just wanted to follow up on it. If you could just talk about the preferred use for the additional 47 MW of gross capacity at Tidal at this stage. It sounds like you're considering either the GPU as a service type model or another co-location deal. If you were to do a co-location type of contract, would Volta be interested in the incremental capacity, or would you be marketing that out to new prospective tenants?

Speaker #7: So, if you could just talk about the preferred use for the additional 47 megawatts of gross capacity at Tidtio. At this stage, it sounds like you're considering either the GPUs and service-type model, or another colocation deal.

Speaker #7: If you were to do a colocation-type of contract, would Volta be interested in this incremental capacity, or would you be marketing that out to new prospective tenants?

Speaker #2: I mean, I don't really want to speak for Volta here on this call, but there is a lot of interest from Volta in expanding our relationship.

Michael Potter: I don't really want to speak for Volta here on this call, there is a lot of interest from Volta in expanding our relationship and we will consider it along with other options.

Haris Basit: I don't really want to speak for Volta here on this call, there is a lot of interest from Volta in expanding our relationship and we will consider it along with other options.

Speaker #2: And we will consider it along with other options.

Speaker #7: And then just given where GPU pricing is, obviously, you guys have had some success in that business as well. Would you say you're more or less likely to deploy your own GPUs to use that additional 47?

Mike Colonnese: Just given where GPU pricing is, obviously you guys have had some success in that business as well. Would you say you're more or less likely to deploy your own GPUs to use that additional 47, or do you think at this juncture, co-location model would be the preferred way?

Speaker #7: Or do you think, at this juncture, the colocation model would be the preferred way?

Michael Potter: We haven't made any final decisions for the 47 MW, if you're looking for a forward-looking comment there, I don't know, Jihan, if you want to add some color there.

Haris Basit: We haven't made any final decisions for the 47 MW, if you're looking for a forward-looking comment there, I don't know, Jihan, if you want to add some color there.

Speaker #2: We haven't made any final decisions for the 47 megawatts, but if you're looking for a forward-looking comment there, I know Jihan—if you want to add some color there.

Speaker #3: Actually, the already some interested customers talking with us on those capacities. So for any GPU deal, we will need to considering about the financing and the deployment technical together.

Jihan Wu: Actually, there are already some interested customers talking with us on those capacities. For any GPU deal, we will need to considering about the financing and the deployment technical together. I think right now it's not quite the right time to talk about too much. Our execution line, I think Malaysia right now is more in the front of it. Which means we see a lot of interest from customers, and we will focus them to discussing with some Malaysia capacity. After that, we will start to execute those Tidal 47 MW of AI cloud.

Speaker #3: So I think right now it's not quite the right time to talk about too much. Our execution line—I think Malaysia right now is more in the front of it.

Speaker #3: So, which means if we see a lot of interest from customers, we will focus on discussing with some Malaysia capacity. And after that, we will start to execute those TDoS 47 megawatts of AI cloud.

Speaker #7: And then one more for me, just on the Bitcoin mining side. So BitGear has been one of the few miners that is continuing to aggressively expand capacity in this environment, really positioning you well for the next stage of the cycle here.

Mike Colonnese: One more from me, just on the Bitcoin mining side. Bitdeer has been one of the few miners that has continued to aggressively expand capacity in this environment, really positioning you well for the next stage of the cycle here. Just curious how we should think about hash rate growth in the back half of the year. Sounds like you have the wafer inventory to develop, deploy, manufacture your own SEALMINER miners for your proprietary use. Just trying to think through the best way to model hash rate expansion from here.

Speaker #7: Just curious, how should we think about hash rate growth in the back half of the year? It sounds like you have the wafer inventory to develop, deploy, and manufacture your own Teal miners for your proprietary use.

Speaker #7: Just trying to think through the best way to model hash rate expansion from here.

Speaker #4: I think in general for modeling purposes, if you look at the steady increase we've had over the last few quarters, it'll be similar to that where we deploying about the same amount of mining machines per month going forward.

Michael Potter: I think in general for modeling purposes, if you look at the steady increase we've had over the last few quarters, it'll be similar to that. We're deploying about the same amount of mining machines per month going forward. I don't think we'll be greatly accelerating from where we are, I think steady deployment at a reasonably high rate as we've shown over the last few quarters.

Speaker #4: So it'll be—I don't think it would be greatly accelerating from where we are, but I think steady deployment at a reasonably high rate, as we've shown over the last few quarters.

Speaker #7: Very helpful. Thank you for taking my questions.

Mike Colonnese: Very helpful. Thank you for taking my questions.

Speaker #1: Thank you. Our next question comes from the line of Brian Kinslinger with Alliance Global Partners. Your line is now open.

Operator: Thank you. Our next question coming from the line of Brian Kinstlinger with Alliance Global Partners. Your line is now open.

[Analyst] (Alliance Global Partners): Hi, this is Kevin for Brian. Thanks for taking our questions. For the Tydal site, what tasks does Bitdeer need to accomplish between now and the beginning of both phases one and two?

Speaker #8: Hi, this is Kevin for Brian. Thanks for taking our questions. For the Tidal site, what tasks does Bitdeer need to accomplish between now and the beginning of both phases one and two?

Speaker #2: Well, I mean, phases one and two are full RFS, right? So they will be completely ready for the customers' GPUs at that time. And so, effectively, all of the long lead time items have been ordered.

Michael Potter: Well, phases one and two are full RFS, right? They will be completely ready for the customer's GPUs at that time. Effectively, all of the long lead time items have been ordered.

Haris Basit: Well, phases one and two are full RFS, right? They will be completely ready for the customer's GPUs at that time. Effectively, all of the long lead time items have been ordered. They will arrive, the scheduled arrivals are before the respective RFS dates. We have to finish installing those. There's a commissioning part of it that is also very critical. It's in very good state right now.

Speaker #2: They will arrive the scheduled arrivals are before the respective RFS dates. We have to finish installing those. There's a commissioning part of it that is also very critical.

Haris Basit: They will arrive, the scheduled arrivals are before the respective RFS dates. We have to finish installing those. There's a commissioning part of it that is also very critical. It's in very good state right now. We've had an engineering analysis, it looks like we're going to hit our target dates. There's probably 100 things to do. Off the top of my head, I can't name what they are, there's hundreds of people on site working on this, and it's moving ahead. There's no specific item that stands out that is more critical than the others that could potentially cause a problem. We feel like we're in a pretty good position to hit those dates.

Speaker #2: So, it's in very good state right now. We've had an engineering analysis, and it looks like we're going to hit our target dates.

Haris Basit: We've had an engineering analysis, it looks like we're going to hit our target dates. There's probably 100 things to do. Off the top of my head, I can't name what they are, there's hundreds of people on site working on this, and it's moving ahead. There's no specific item that stands out that is more critical than the others that could potentially cause a problem. We feel like we're in a pretty good position to hit those dates.

Speaker #2: There's probably 100 things to do. Off the top of my head, I can't name what they are, but there's it's hundreds of people on site working on this and it's moving ahead.

Speaker #2: There's no specific item that stands out as more critical than the others that could potentially cause a problem, so we feel like we're in a pretty good position to hit those dates.

Speaker #8: Got it. Thank you. And then Bitdeer recently announced it will lease a 21.7 megawatt data center in Malaysia for AI cloud. Can you share some more details like the cost and how you finance the GPUs and any other infrastructure needed?

[Analyst] (Alliance Global Partners): Got it. Thank you. Bitdeer recently announced it will lease a 21.7 megawatt data center in Malaysia for AI cloud. Can you share some more details, like the costs and how you'll finance the GPUs and any other infrastructure needed? When you expect this data center will be ready for your customers, maybe could you share a range at full capacity of what the annual revenue run rate would be for this data center? Thank you.

Speaker #8: When do you expect this data center will be ready for your customers? And then, maybe could you share a range, at full capacity, of what the annual revenue run rate would be for this data center?

Michael Potter: Yeah, it's a little bit early to talk about specifics and forward forecasts on that. I'm sure that Jihan can give some additional color, we do have several customers that are interested in it. The GPU financing will depend on whatever contract we have, and how it needs to be done based on that contract. When you have a good quality customer backstopping the use of the GPU, it's normally much more straightforward to find financing for GPUs.

Speaker #4: Yeah, it's a little bit early to talk about specifics and forward forecasts on that. I'm sure that Jihan can give some additional color, but we do have several customers that are interested in it.

Speaker #4: And the GPU financing will depend on whatever contract we have and how it needs to be done based on that contract. When you have a good quality customer backstopping the use of the GPU, it's normally much more straightforward to find financing for GPUs.

Speaker #1: Thank you.

Operator: Thank you.

Speaker #2: Thank you.

[Analyst] (Alliance Global Partners): Thank you.

Speaker #1: Our last questioner, coming from the line of Ben Summers with BTIG, your line is now open.

Operator: Our last question are coming from the line of Ben Summers with BTIG. Your line is now open.

Speaker #7: Hey, good morning, guys, and thanks for taking my question. So Harris, you mentioned some exploring behind the meter opportunities. And I know you guys are doing some onsite generation in Alberta, but any additional color you can provide on preliminary conversations or steps you have taken to develop some behind-the-meter power moving forward?

Ben Summers: Haris, you mentioned some exploring behind-the-meter opportunities, and I know you guys are doing some on-site generation in Alberta, but any additional color you can provide on preliminary conversations or steps you have taken to develop some behind-the-meter power moving forward?

Ben Sommers: Haris, you mentioned some exploring behind-the-meter opportunities, and I know you guys are doing some on-site generation in Alberta, but any additional color you can provide on preliminary conversations or steps you have taken to develop some behind-the-meter power moving forward?

Speaker #2: I think, other than us talking about Alberta in the past, it's too early to talk about that at any other site. So, if any of those things develop further, we can mention it in the future.

Haris Basit: Other than us talking about Alberta in the past, I think it's too early to talk about that at any other site. If any of those things develop further, we can mention it in the future.

Speaker #4: We have talked about this being the first site, but we do have the ability to expand it. So, this is sort of a proof of concept for us in Alberta.

Michael Potter: We have talked about Alberta, that this being the first site, but that we do have the ability to expand it. This is sort of a test of concept for us in Alberta. Underneath the program they have there of Bring Your Own Power, and the availability of stranded gas in quite a few locations in Alberta, which sort of ensures you get reasonable supply at reasonable costs. It is a site that, if Fox Creek works well for us, we can expand in. Using the same model and the capability we've been developing internally, we have looked at other sites that we can do more in, and if we decide to do it, we'll update everybody at that time.

Speaker #4: Underneath the program, they have their bring your own power. And the availability of stranded gas in quite a few locations in Alberta, which sort of ensures you get reasonable supply at reasonable costs.

Speaker #4: It is a site that if Fox Creek works well for us, we can expand in. Using the same model and the capability we've been developing internally, we have looked at other sites that we can do more in.

Speaker #4: And if we decide to do it, we'll update everybody at that time.

Speaker #7: Super helpful. And then just on the AI cloud business, quickly—we've touched on the expansion there. Just curious what you're seeing in terms of term length for new GPU cloud contracts, and maybe how that's compared, or how that's changed over the past 90 days.

Ben Summers: Super helpful, just on the AI cloud business quickly. We've touched on the expansion there. Just curious what you're seeing in terms of term length for new GPU cloud contracts and maybe how that's compared or how that's changed over the past 90 days.

Ben Sommers: Super helpful, just on the AI cloud business quickly. We've touched on the expansion there. Just curious what you're seeing in terms of term length for new GPU cloud contracts and maybe how that's compared or how that's changed over the past 90 days.

Speaker #4: Harris or Jihan, do you have any comments on that?

Michael Potter: Haris or Jihan, do you have any comments on that?

Speaker #3: Well, right now, what we are discussing with our customers on the GPU contract, mostly focusing on those long-term contracts. I mean, five years, we are not spending pretty much time on talking contract that's shorter than that.

Jihan Wu: Well, right now, what we are discussing with our customers on the GPU contract, mostly focusing on those long-term contract, I mean, five years. We are not spending pretty much time on talking contract that is shorter than that. Our expansion will mostly be supported by this kind of a long-term contract.

Speaker #3: And our expansion will mostly be supported by this kind of long-term contract.

Speaker #7: Super helpful. Thank you guys for taking my questions.

Ben Summers: Super helpful. Thank you guys for taking my questions.

Ben Sommers: Super helpful. Thank you guys for taking my questions.

Speaker #1: Thank you. And there are no further questions in the queue at this time. I will now turn the call back over to Michael Porter for any closing comments.

Operator: Thank you. There are no further questions in the queue at this time. I will now turn the call back over to Michael Potter for any closing comments.

Speaker #8: Thanks, everyone, for joining us. We look forward to speaking again soon. Operator, you may end the call.

Michael Potter: Thanks everyone for joining us, and we look forward to speaking again soon. Operator, you can end the call.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

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