Earnings call transcript: Bitdeer Technologies Q2 2025 shows strong revenue growth

Bitdeer Technologies Group (market cap: $2.63 billion) reported a significant increase in revenue for Q2 2025, surpassing market expectations. The company reported an earnings per share (EPS) of -$0.76, a sharp contrast to the forecasted -$0.12, resulting in a 533.33% negative surprise. Despite this, revenue reached $155.6 million, far exceeding the expected $90.35 million, marking a 72.22% positive surprise. According to InvestingPro analysis, the stock appears overvalued at its current price of $13.39, with analysts projecting continued sales growth but no profitability this year. The stock saw a slight premarket increase of 0.07%, closing previously at $13.39, amidst a broader sector downturn.

Key Takeaways

• Revenue for Q2 2025 was $155.6 million, a 57% increase year-over-year.
• EPS fell short of expectations by a wide margin, at -$0.76 versus a forecast of -$0.12.
• Stock price showed a minor premarket increase of 0.07%.
• Company expects to reach 40 exahash in self-mining hash rate by October 2025.
• Launched new SealMiner A2 and plans for A3 launch in October.

Company Performance

Bitdeer Technologies demonstrated robust revenue growth in Q2 2025, with a 57% year-over-year increase. This performance reflects the company’s aggressive expansion in self-mining and ASIC sales under its vertically integrated strategy. Despite a substantial net loss of $147.5 million and weak gross margins of 9.67%, the company maintains a strong cash position with $299.8 million in cash and equivalents. InvestingPro subscribers can access 12 additional key insights about Bitdeer’s financial health and growth prospects through exclusive ProTips and comprehensive research reports.

Financial Highlights

• Revenue: $155.6 million, up 57% YoY.
• Earnings per share: -$0.76, missing the forecast of -$0.12.
• Gross profit: $12.8 million.
• Adjusted EBITDA: $17.3 million.
• Self-mining revenue: $59.3 million.
• SealMiner ASIC sales revenue: $69.5 million.

Earnings vs. Forecast

Bitdeer’s actual EPS of -$0.76 was significantly below the forecasted -$0.12, resulting in a 533.33% negative surprise. However, the revenue of $155.6 million exceeded the forecast of $90.35 million by 72.22%. This mixed performance highlights the challenges in meeting profitability targets despite strong sales growth.

Market Reaction

Following the earnings announcement, Bitdeer’s stock experienced a slight uptick of 0.07% in premarket trading. The stock has faced a 2.83% decline from its last close at $13.39, indicating cautious investor sentiment amid broader market trends. The stock remains within its 52-week range of $5.40 to $26.99.

Outlook & Guidance

Looking ahead, Bitdeer aims to reach a self-mining hash rate of 40 exahash by October 2025, with potential for further expansion by year-end. The company is also prioritizing the internal use of its SealMiner ASICs and exploring opportunities in high-performance computing (HPC) and artificial intelligence (AI) at its Clarington site.

Executive Commentary

Harris Nasse, Chief Strategy Officer, emphasized the company’s momentum driven by its vertically integrated strategy, stating, "We are now turning the corner with strong momentum powered by our vertically integrated and technology-driven growth strategy." Chairman and CEO Jihan Wu expressed optimism about Bitcoin’s long-term potential, predicting, "We believe in 80 years, Bitcoin can grow up to $1,000,000."

Risks and Challenges

• The significant EPS miss may raise concerns about profitability.
• Market volatility in Bitcoin prices could impact future revenues.
• Supply chain disruptions could affect ASIC production.
• Intense competition in the cryptocurrency mining sector.
• Regulatory changes in cryptocurrency markets could pose risks.

Q&A

During the earnings call, analysts inquired about the demand environment and Bitdeer’s strategy for Bitcoin treasury management. Executives highlighted a balanced approach and ongoing development partnerships for data center expansion, particularly focusing on the Clarington site as a primary HPC/AI opportunity.

Full transcript - Bitdeer Technologies Group (BTDR) Q2 2025:

Conference Operator: Good day, and welcome to the Bitt Deer Second Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call may be recorded.

I would now like to turn the call over to Yu Gi Ohze, Investor Relations. Please go ahead.

Yu Gi Ohze, Investor Relations, BitDeer: Thank you, operator, and good morning, everyone. Welcome to BitDeer’s second quarter twenty twenty five earnings conference call. Joining me today are Jihoon Wu, Chairman and CEO Matt Kong, Chief Business Officer Harris Nasse, Chief Strategy Officer and Jeff LaBerge, VP of Capital Markets and Strategy. Harris will begin today by providing a high level overview of BitDeer’s second quarter twenty twenty five results and then cover the company’s strategy and a detailed business update. After that, Jeff will cover BitDeer’s second quarter financial results in more detail, and then we will open the call for questions.

To accompany today’s earnings call, we have provided a supplemental investor presentation. This presentation can be found on Bitjeer’s Investor Relations website under Webcasts and Presentations. Before management begins their formal remarks, we would like to remind everyone that during today’s call, we may make certain forward looking statements. These statements are based on management’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially. For a complete discussion on forward looking statements and the risks and uncertainties related to Biddear’s business, please refer to its filings with the SEC.

Further, in addition to discussing results that are calculated in accordance with International Financial Reporting Standards, or IFRS, We will also make references to certain non IFRS financial measures, such as adjusted EBITDA and adjusted profit or loss. For more detailed information on our non IFRS financial measures, please refer to our earnings release that was published earlier today, which can be found on Bitier’s Investor Relations website. Thank you. I will now turn the call over to Harris. Harris?

Harris Nasse, Chief Strategy Officer, BitDeer: Thank you, Yuja, and good day, everyone. Thanks for joining our second quarter twenty twenty five earnings call. Since our last call, we’ve made significant progress across all of our strategic priorities, and I’m excited to walk you through those updates today. I will begin with a brief overview of our q two financial results, then highlight what we’re focused on for the remainder of the year, and share a glimpse of our outlook beyond 2025. Starting on slide three.

In Q2, total revenue was $155,600,000 up 122% sequentially from Q1 and up 57% year over year. Gross profit was $12,800,000 and adjusted EBITDA was $17,300,000 up materially from Q1. This significant improvement in our results is from strong execution in our self mining business and commercial sales of our SealMiner ASICs. Mass production of our SealMiner ASICs enabled us to increase our average operating hash rate by 46% to 14.2 exahash during the quarter from the 9.7 exahash in Q1. In addition, we sold and shipped 5.3 exahash of our SealMiner A2 minuteing rig to external customers, recognizing $69,500,000 in revenue in Q2.

As of the July, we further grew our self mining hash rate to 22.3 exahash, representing a 162% increase from the beginning of the year. We also sold and recognized revenue on an additional 0.6 exahash of SealMiner A2s in July. Looking back on the first half of the year, we believe Q1 marked both the bottom and a key inflection point. We are now turning the corner with strong momentum powered by our vertically integrated and technology driven growth strategy. Our decision to invest aggressively in chip design, supply chain, and manufacturing built a strong foundation that is now enabling us to rapidly scale our own self mining operations while positioning us to capture a meaningful share of the Bitcoin mining ASIC market.

By combining our proprietary technology, in house hardware manufacturing, and expansive global power portfolio, we’ve created a highly advantaged and defensible platform for long term growth. Looking forward, our SealMiner ASICs continue to roll off the production line, and we anticipate continued rapid growth in our self mining hash rate throughout the remainder of the year. We are on track to achieve our previous target of 40xahash of self mining hash rate by the October. Furthermore, wafer supply allocation at our foundry has improved, and we expect to exceed this target by year end. This will put us on par with the largest publicly traded Bitcoin miners in the world.

As we continue to scale, our fleet wide energy efficiency will also improve, delivering better mining margins and operating leverage. Upon exiting this year, we anticipate record results on a run rate basis, setting a strong foundation for 2026 and beyond. Last year, when we embarked on our aggressive ASICs roadmap, we understood that building chips alone wasn’t sufficient. To win in this market, we had to achieve industry leadership in performance and energy efficiency. Today, we are proud that our dedicated r and d team has executed this plan with precision, delivering three of the four ships on schedule and on spec.

With our latest SealMiner a three, we now possess one of the most competitive mining rigs in the market, built on leading process nodes and optimized for high efficiency deployment at scale. All machine level validation metrics have met or exceeded our internal benchmarks, and we are preparing to initiate mass production. The first batch of SealMiner A3 minuteing machines are expected to be available for shipment in October. We expect SealMiner A3 to contribute to our revenue through both self mining and external sales in 2026. Looking ahead, our r and d efforts have now pivoted to the c l o four chip.

We are taking a dual track approach to c l o four with two completely independent designs to ensure success. The first c l o four chip, using a more traditional circuit architecture, has already been taped out, and we expect initial sample wafers to come back in q three twenty twenty five. Our second c l o four chip will be a completely new, next generation architecture targeting breakthrough efficiency of approximately five joules per terahash at the chip level. This chip is a full redesign that uses new digital circuit architectures that enable breakthrough improvements in energy efficiency. We believe the digital chip architecture utilized by our CLO port chip will set a new standard for Bitcoin mining and also have application to a broader class of high performance, energy intensive compute applications.

We have begun the process of filing patents on our technology. Furthermore, in July, we made major progress with the successful development of customized silicon design software necessary to fully exploit this new architecture. We have also expanded the senior engineering and software team in The US to support the CL o four chip development, as well as added senior roles in legal and IP licensing. We are extremely excited about the CL o four. Together with our SealMiner a three minuteing rig, we believe these two chips will firmly position BitDeer as a leading supplier with the most energy efficient mining rigs in the industry, significantly enhancing our competitive position and unlocking substantial value for both our customers and shareholders.

Next, I’d like to provide a quick update on our energy infrastructure that’s highlighted on slides eight and nine of our supplemental investor presentation. In Q2, we continued our rapid build out of our global power and data center infrastructure. As of July 2025, we energized three sixty one MW of data center capacity for self mining, of which 126 megawatts was at our Tidal, Norway site and two thirty five megawatts in Jigmaling, Bhutan, bringing our total available electrical capacity to approximately 1.3 gigawatts. We expect the remaining 49 megawatts in TITLE and two sixty five megawatts in Jigmealing to be energized in Q3, which will bring our total available power capacity to nearly 1.6 GW. In May, we achieved a key milestone by signing the letter of agreement with AEP Ohio for the second phase of power at the Clarington site.

This LOA advances the final stages of the contracting process for the full five seventy MW subcapacity. Critically, this document was executed before the Public Utilities Commission of Ohio issued a ruling to classify data centers under an industry specific billing structure. This new structure would have imposed substantially higher collateral requirements and minimum demand charges. Locking in our position ahead of this monumental regulatory shift allows us to proceed with plans for the full build out of this strategic data center with significantly lower cost structure. With regard to our HPC AI initiative in Clarington, Ohio, we have entered into advanced negotiations with a development partner that has significant expertise and customer relationships.

We are optimistic that we will be able to share more details in the coming quarter. Lastly, on slide 10 of our supplemental investor presentation, we would like to reemphasize our guidance for our self mining hash rate. Given the steady rollout of our SealMiner A2 minuteing rig, we remain on track to reach 40xahash by October. Furthermore, as I mentioned earlier, wafer supply has improved for both our CLO2 and CLO3 chips, leading us to believe we will surpass this target by year end. Given the significant amount of power capacity we have coming online, our near term plan is to prioritize our current ASIC production towards self mining.

In summary, we are pleased with our team’s execution across all our strategic priorities. We have successfully met our initial targets for our aggressive AISC road map, our self mining infrastructure and deployment plan, and our entry into the massive AISC market opportunity. We have also made significant strides in our HPC AI strategy. As we move into the 2025, we expect these efforts to be reflected in our financial results, and we look forward to sharing updates on our progress. I’ll now turn it over to Jeff Laberge, our VP of Capital Markets and Strategy, to go over our detailed financial results for the quarter.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Thank you, Harris. Before I go over bit to your second quarter financial results, I’d like to remind everyone that all figures I refer to today are in U. S. Dollars. Q2 consolidated revenue was $155,600,000 up from $99,200,000 in Q2 twenty twenty four and $70,100,000 in Q1 twenty twenty five, or up 56.8% year over year and 121.9% sequentially.

Self mining revenue was $59,300,000 versus $41,600,000 in Q2 twenty twenty four, and $37,200,000 in Q1 twenty twenty five, or up 42.5% year over year and up 59.4% sequentially. These results were primarily due to a 103.3% year over year and 45.5% sequential increase in self money hash rate, as well as higher bitcoin prices. These increases were partially offset by the April 2024 halving event and higher mining difficulty. Steel Liner sales revenue was $69,500,000 compared to $0 in Q2 twenty twenty four and $4,100,000 in Q1 twenty twenty five. Cloud Hash Rate revenue was $0 versus $12,200,000 in Q2 twenty twenty four and $100,000 in Q1 twenty twenty five.

This decline was due to the expiration of long term cloud hash rate contracts and the subsequent reallocation of this hash rate to our self mining operations. General hosting was $9,300,000 versus $20,600,000 in q two twenty twenty four and $9,600,000 in Q1 twenty twenty five. Membership hosting revenue was $14,600,000 versus $22,100,000 in Q2 twenty twenty four and $16,300,000 in Q1 twenty twenty five. This year over year decrease in hosting revenue was mainly caused by two factors. First, we converted 100 megawatts of hosting capacity at our Texas facility to self mining, which has been equipped with steel miner hydrocooled mining rigs.

Second, some hosting customers removed less efficient mining rigs after the halving event in April 2024. Some of this extra capacity is currently being replenished by new hosted mining rigs. Total gross profit for the quarter was positive $12,800,000 versus $24,400,000 in Q2 twenty twenty four and negative $3,200,000 in Q1 twenty twenty five. Gross margin was 8.2% versus 24.6% in Q2 twenty twenty four and negative 4.6% in Q1 twenty twenty five. This year over year decrease in our gross margin was primarily driven by the April 2024 halving events impact on self mining, higher mining difficulty and lower hosting and cloud hash rate revenues.

Sequentially, our gross margin improved due to the increase in our self mining hash rate, improvements in our fleet efficiency and commercialization of our SteelMiner ASICs. Going forward, we expect gross margin to improve over the coming quarters as our hash rate ramps and our overall fleet efficiency improves. Total operating expenses for the quarter were $42,300,000 versus $26,100,000 in Q2 twenty twenty four and $75,800,000 in Q1 twenty twenty five. The year over year increase was primarily driven by R and D costs for our CLMiner roadmap and higher G and A. The sequential decrease was primarily driven by our R and D costs due to the absence of the tape out costs for CL03 that occurred in Q1 twenty twenty five.

Other operating income was $3,700,000 primarily due to the reverse of non cash impairments of Bitcoin. As a reminder, under IFRS, Bitcoin is classified as an intangible asset and is measured at cost less any accumulated impairment losses with no subsequent upward revaluation permitted. Other net gain for the quarter was negative $108,500,000 versus negative $15,500,000 in Q2 twenty twenty four and positive $503,100,000 in Q1 twenty twenty five. The net loss was due to the non cash derivative loss on the convertible senior notes issued in August 2024, November 2024, and June 2025, which I will discuss in more detail in the liability section. IFRS net income was negative $147,500,000 versus negative $17,700,000 in Q2 twenty twenty four and positive $409,500,000 in Q1 twenty twenty five.

Adjusted profit was negative $24,400,000 versus positive $3,200,000 in Q2 twenty twenty four and negative $89,800,000 in Q1 twenty twenty five. Adjusted EBITDA was positive $17,300,000 versus positive $23,500,000 in Q2 twenty twenty four and negative $56,100,000 in Q1 twenty twenty five. This quarter’s higher year over year and sequential top line and non GAAP bottom line performance was mainly driven by higher self mining hash rate, steel miner sales and higher bitcoin prices. These were primarily offset by higher global network cash rate, lower hosting and cloud mining revenue, higher R and D costs and G and A expenses as previously described. Net cash used for operating activities was $334,900,000 primarily driven by two thirty million dollars of payments for seal miner wafers and related production costs, and $27,000,000 for the initial tape out of seal four.

The remainder was driven by electricity costs from the mining business and general corporate overhead. Please note, a large portion of the $27,000,000 CL04 tape out cost is expected to be expensed in Q3. Net cash used for investing activities was $12,600,000 which was driven by $106,500,000 of capital expenditure, of which $76,000,000 was related to data center infrastructure and related construction. Proceeds from disposal of cryptocurrency from our primary business was $100,100,000 Net cash generated from financing activities for the quarter was $431,500,000 which resulted primarily from $364,300,000 of net proceeds from the convertible senior notes issued in June 2025, dollars 180,000,000 of borrowings from a related party, and $50,000,000 of proceeds from the issuance of shares in connection with the exercise of the Tether warrants. This was partially offset by $129,600,000 used for the purchase of a zero strike call option in connection with the convertible senior notes issued in June 2025 and payment of $33,800,000 in connection with the extinguishment of a portion of the convertible senior notes issued in August 2024.

There were no shares issued under our ATM during the quarter. Moving on to our $20.25 Bitcoin mining infrastructure spend, we continue to expect CapEx for the continued build out of our global power and data center infrastructure to be in the range of $260,000,000 to $290,000,000 for calendar year 2025. This range includes reported infrastructure CapEx in Q1 and Q2 of approximately $118,000,000 The remaining projected CapEx is expected to fund the completion or near completion of our data centers in Keto, Norway, Jigmaling, Bhutan, Maslin, Ohio and Ethiopia, as well as partial completion of the 101 megawatt gas fired power plant in Alberta, Canada. Please note that this guidance only factors in power and data center spend for Bitcoin mining and does not include CapEx for steel miners. In terms of our balance sheet, we ended the quarter in a strong financial position with $299,800,000 in cash and cash equivalents, dollars 169,300,000.0 in cryptocurrencies, and $533,100,000 in borrowings, excluding derivative liabilities.

Please note the $169,300,000 in cryptocurrencies is accounted for according to IFRS rules and is currently below its market value. Derivative liabilities were four thirty eight million dollars which relate to the August 2024, November 2024, and June 2025 convertible notes, representing a $181,200,000 increase compared to the last quarter. This is a noncash fair value adjustment driven by the increase in our stock price and does not impact our liquidity or operations. Under IFRS, certain derivative instruments such as warrants and convertible debt are required to be revalued at fair market value each reporting period. As our stock price increases, the fair value of these instruments rise, resulting in a higher reported liability and vice versa.

The recorded liability will ultimately be netted as settlement, either upon conversion to equity or expiration, and does not represent an actual cash outflow. In June, we successfully closed a $375,000,000 convertible senior note through an oversubscribed private placement offering. The note bears interest at 4.875% and is due in 02/1931. Finally, regarding our outstanding ATM facility, we have not sold any additional shares in Q2 twenty twenty five. Thank you, everyone.

That concludes the prepared remarks section of our earnings call. Operator, please open the call for questions.

Conference Operator: Thank you. Our first question comes from Greg Lewis with BTIG. Your line

Greg Lewis, Analyst, BTIG: Yes, hi. Thank you and good morning, good afternoon, good evening and thanks for taking my questions. I did want to touch on the prepared remarks around the data center opportunity. Realizing, I guess, sounds like you’re in active negotiations with that, so understanding what you can and cannot say. But kind of curious as we think about it, one of the things that I think the market is trying to understand as you kind of pursue with a partner, how is Fifth Year thinking about the risk around construction?

It sounds like in the past we’ve talked about financing being done with the partner in terms of sourcing general contractors to do the work. Any kind of color you can provide around that And then as this is the Clarendon site, are we pursuing something similar at I know in the past we’ve talked about potentially Rockdale and even Norway. Is this partner,

Harris Nasse, Chief Strategy Officer, BitDeer: is this a

Greg Lewis, Analyst, BTIG: multi do we think this could be a multi partner relationship across multiple sites or is this potentially a one off?

Harris Nasse, Chief Strategy Officer, BitDeer: Hey, thanks Greg for the question. So the focus right now is on the Clarington site. However, as we’ve reported in the past, we have had inbound requests for both the sites in Norway and Rockdale, and we’re, you know, in discussions there, but they’re much less advanced than the Clarendon site. Our current thinking around the Clarendon site is that our capital requirements would be very minimal, that it would be provided, you know, through the partner and then, of course, construction loans on top of that. Does that answer your question?

Greg Lewis, Analyst, BTIG: Yeah. No. That’s that’s super helpful. And then and then my other question was, you know, just as we look at, you know, as as Bitcoin ASIC production becomes more important to the company, it looked like maybe pricing improved a little bit for your sales. Is that maybe a sign is there some strength in the market or is that more of a shift in you selling more efficient rigs?

Is and maybe it’s a little bit of both.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: So I think pricing was fairly consistent to last quarter. You know, we are seeing increased demand, obviously increasing strength due to, you know, rise in hash price. Bitcoin price obviously has helped that out as well. So the demand has definitely, you know, increased, and, you know, we think the demand for seal miner a three will obviously be much higher as well.

Analyst: Okay. Thank you.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Thanks, Rick.

Conference Operator: Thank you. Our next question comes from Dylan Hesslin with ROTH Capital Partners. Your line is open.

Dylan Hesslin, Analyst, ROTH Capital Partners: Hey, good morning. Thanks for taking my question. To follow-up on some of the HPC comments in Clarendon, I mean, have you sort of solidified with your partner at all the approach you’re going to take in terms of what that could look like? Would that be a co location deal like a lot of the peers have done? Would you try to do a powered shell or given your experience running the GPU clusters, would you try to do more of a full stack?

Just how are you thinking about that opportunity?

Harris Nasse, Chief Strategy Officer, BitDeer: The, Clarendon site is quite large, you know, 570 megawatts gross power. And so a full stack, is not currently in our thoughts. We’re really looking at, trying to focus on a build to suit. However, the main thing to remember here is that, you know, we’re flexible and that as we move forward, it will depend to a large part on which tenant we end up with, who’s the final, you know, customer for the site. So, it’s hard to answer those questions definitively other than our target is to do a build to suit.

Dylan Hesslin, Analyst, ROTH Capital Partners: Got it. Thank you. And just as a follow-up on the wafer availability, like, what is the sort of timeline into when you get better clarity as to the chip or the wafers you’re gonna be allocated?

Harris Nasse, Chief Strategy Officer, BitDeer: Well, you know, we get we’re in sort of constant communication with TSMC, and it’s hard to, you know, predict exactly when we get allocations of new wafers. But we’re also not really publicizing our wafer allocations ahead of time. So or even as we get them. We’re we, you know, we report the amount of machines that we produce and use internally and that we sell in, you know, as the quarter or the month ends, but not in advance.

Conference Operator: Great. Thank you. Thank you. Our next question comes from Mike Colonies with H. C.

Wainwright. Your line is open.

Mike Colonies, Analyst, H.C. Wainwright: Good morning guys. Thanks for taking my questions today. First one for me, and Jeff, you alluded to a bit of this on the demand side, but if you could provide more color around some of the early demand you’re seeing for the CL Miner and how that matches up against expected manufacturing capacity. Harris, I think you mentioned that the first batch would be ready to ship sometime in October?

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: That’s correct. So we are planning to have the first batch available this year. Again, we’ve not given any guidance on the total hash rate that will be available. We can’t say that we likely will be using a large portion of that internally, but we’ll plan to to sell some of those as well.

Harris Nasse, Chief Strategy Officer, BitDeer: We we are not actively marketing the a three at this point. So, at least not extensively for our external use.

Mike Colonies, Analyst, H.C. Wainwright: Got it. Thanks for the color there, guys. And the follow-up for me, just curious to get your general outlook for ASIC prices based on current Bitcoin market dynamics and the broader competitive landscape right now. And really how that A3 chip or ASIC will stack up on pricing compared to what some of your peers are charging for their most efficient ASICs out there in the market today?

Harris Nasse, Chief Strategy Officer, BitDeer: Well, I mean, you know, we always have to be competitive on pricing. The a three is, you know, it’s a great product. It has significant efficiency advantages. And so we haven’t determined pricing. As I said, we’re not going out there really pushing it as an external sales right now.

We’re our plan is to use the bulk of the initial batches to for internal use. So, I mean, I can’t really say what our external pricing will be. It will be better than the a two. Of course, it’ll be higher than the a two because it’s a much more efficient machine. But we haven’t set that price yet, and, it’s probably premature.

Analyst: That’s all for me. Thanks.

Brett Knoblauch, Equity Research Analyst: Thanks Mike.

Conference Operator: Thank you. Our next question comes from Mark Palmer with The Benchmark Company. Your line is open.

Mark Palmer, Analyst, The Benchmark Company: Yes, good morning and thanks for taking my questions. With regard to the use of the production of various seal miners going forward, how are you thinking about the balance between use for self mining versus external sales? And what are the factors that are going to enter into that, including obviously the price of Bitcoin on the one hand, but also demand for those units on the other?

Harris Nasse, Chief Strategy Officer, BitDeer: So, you know, as we’ve said, we are prioritizing our internal use. And that’s driven by the fact that we don’t want idle capacity, that the margins for self lining are actually quite high, and that we think we are, you know, still in the early stages of of a Bitcoin boom cycle. So we’re certainly prioritizing that. Our internal capacity will start to fill up, you know, in the coming months and quarters, and so you’ll see naturally a transition from using these mining rigs internally to selling more and more externally. Long term, of course, our goal is to be a major vendor of these to the overall market and not just for internal use.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Yeah. And, Mark, I would just add to that, you know, we wanna be in a position where we can always be very market based in approach, you know, that we will be able to have a home for every ASIC that we ever manufacture and be able to decide what’s really what the highest and best use for it is, whether it’s using it internally or selling it to it to third parties. As of right now, because we have significant capacity coming online, we obviously don’t want that sitting idle, so we are prioritizing that. But moving forward, we will be able to have that much more market based approach.

Mark Palmer, Analyst, The Benchmark Company: And kind of along the same lines in terms of the options on the table, what is your current thinking with regard to the use or non use of the Bitcoin on the company’s balance sheet in terms of accumulation versus liquidation and funneling the proceeds from that into the development of the company’s platform? Thank you.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Yeah. So I think, you know, we we started our policy had been to sell most or all the Bitcoin that that we mine up until, I would say, toward the end of last year where we did start start holding. Obviously, we do see value in in holding Bitcoin on the balance sheet. We’re we’re very bullish on it long term. You know, I don’t think it’s that something that we’re necessarily idealistic about.

But, Jihan, do have any other comments on that?

Yu Gi Ohze, Investor Relations, BitDeer0: Yeah. Basically, we are taking a kind of a balanced approach with sell some, and we hold those on. We need to sell some Bitcoin to make sure that our balance sheet in the accounting perspective, the US dollar in long term can be financed. Right? Because we borrow money.

We will borrow US dollars, and we raise US dollars through equity. So, anyway, one day, we need to return the capital to our investors in equity or in our debt. So sell the some of the Bitcoin, I think it’s necessary. But also hold Bitcoin into the long term. I believe it’s a good activity, good deploy of capital because I believe that, like, in eighty years, Bitcoin can grow up to, like, $1,000,000.

That’s, like, 10 times from 10 or eight times from now. That’s almost a 30% IRR investment. So I think that’s also a thing good for investors. But during this kind of a turbulence of market, we we need to take a kind of a balanced approach. So that’s our philosophy here.

Harris Nasse, Chief Strategy Officer, BitDeer: Thank you.

Conference Operator: Thank you. Our next question comes from Kevin Cassidy with Rosenblatt Securities. Your line is open.

Yu Gi Ohze, Investor Relations, BitDeer1: Thanks for taking my question. Know, to me it was a surprise of how much seal miners you sold externally. Can you say where they were sold geographically? Was the tariffs at all involved?

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: We’ve not disclosed specifically where they were sold from a geographic location. You know, we can say they were sold really throughout the world, some in The US, some obviously ex US. So but we’ve not disclosed the buyers or actual geography.

Harris Nasse, Chief Strategy Officer, BitDeer: What was the last part of your question, Kevin? Was what involved?

Yu Gi Ohze, Investor Relations, BitDeer1: Yeah, reference to tariffs in The US, there were high tariffs on equipment sold into The US.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: So the tariffs over the last ninety days have still been on the pause. So any we wouldn’t expect it to have significant tariff exposure, at least in the last quarter.

Yu Gi Ohze, Investor Relations, BitDeer1: Okay, great. And I understand the strategy is to use the equipment more for internal, but would we expect that this is a run rate for equipment sales each quarter?

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Not necessarily. So again, I mean, it will come down to allocation we have from TSMC and really just the cadence of our power coming online. So we are expecting quite a bit of power this quarter and we are expecting to ramp to that 40 eggs a hash target that we’ve set and possibly beyond that by year end. As we kind of roll into into the 2026, 2026, we’ll expect to have the the Maslow, Ohio site come on. That’s another 221 megawatts.

So there will be quite a bit of of additional new capacity that we’ll wanna fill with seal miners. So it really will come down to allocation. But I think we’ll always wanna keep a bit of a balance between internal use and sales. But in this kind of short term period over the next, let’s say, two to four quarters, two to three quarters, it will likely see a higher, you know, balance or higher allocation to self mining.

Harris Nasse, Chief Strategy Officer, BitDeer: So while the numbers are still relatively small, there’ll be more volatility in how much gets sold externally. But, you know, going if you go past the three or four quarters, then you’ll see that become a more steady and predictable number.

Yu Gi Ohze, Investor Relations, BitDeer1: Okay. Thanks for that clarification.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Thank you.

Conference Operator: Thank you. Our next question comes from Mike Grondahl with Northland. Your line is open.

Yu Gi Ohze, Investor Relations, BitDeer2: Hey, guys. How would you describe the demand environment and sort of pricing based on your discussions over the summer for Clarington? I don’t know, did that pick up? Did it moderate? Just kind of curious the cadence.

Harris Nasse, Chief Strategy Officer, BitDeer: So, you know, we haven’t seen any decline at all. And so I you know, it’s hard to say if if it’s, you know, how much it’s picked up. It’s been hot the whole time. Think it’s fair to say.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Yeah. I think we’ve seen a lot a lot of folks back back in the market over these last several months, at least last couple months. The market’s definitely picked up, with from a demand standpoint. So, overall, yeah, we’ve not seen any any slowdown by any means.

Yu Gi Ohze, Investor Relations, BitDeer2: And and, you know, you’ve mentioned Rockdale and Norway. Do you have a priority as to which you think you develop next?

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Not necessarily. I mean, I I think we’re we’re gonna see where where where the market goes. We we think the opportunity in Norway is a very interesting one because EU is quite a ways behind where we are in The US from an adoption standpoint. So we think that opportunity may have a longer tail to it. We think it’s just an advantage for us.

I think more price discovery that happens. But we do think that’s gonna be a very interesting asset given that is 100% hydropower. Norway is very well interconnected from a from a latency standpoint. Good fiber that runs right adjacent to our property, and obviously a good climate for cooling. So we’re very bullish about that opportunity.

Analyst: Okay. Thank you.

Conference Operator: Thank you. Our next question comes from Brett Knoblauch with Equity Research Analyst. Your line is open.

Brett Knoblauch, Equity Research Analyst: Hi, Thanks for taking my question. On maybe just the performance of the A2s that you guys have sold and also just used internally, I guess, is that standing up to your expectations in terms of uptime and overall availability?

Harris Nasse, Chief Strategy Officer, BitDeer: Well, I think the uptime and reliability are quite good, and it’s about what we expected based on the early results. But maybe I’ll ask, Gi hun. I think he’s, has more direct interaction with the customers if he wants to add to that.

Yu Gi Ohze, Investor Relations, BitDeer0: Yes. Excellent, I will say.

Brett Knoblauch, Equity Research Analyst: Alright. Well said. And then maybe just on the development partner kind of advanced negotiations. I guess, what’s the the next step in that process? Is it formalizing an agreement with a development partner?

Is it looking to find maybe a JV partner after that? Or what should we be thinking the cadence is for Clarrington?

Harris Nasse, Chief Strategy Officer, BitDeer: So the next step in the, are you talking about the Clarington, Ohio site? Yes. Yeah. The formalizing the agreement with, the development partner is the next step.

Brett Knoblauch, Equity Research Analyst: And then after that?

Harris Nasse, Chief Strategy Officer, BitDeer: Well, then, you know, the immediate next step is to, identify a tenant and to sign a lease with that tenant. There will be some work done while that’s going on, but, that would be, you know, the the highest priority.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Concerned to that, we could see horizontal construction on the property as well.

Brett Knoblauch, Equity Research Analyst: Awesome. Thank you, guys.

Conference Operator: Thank you. Our next comes from John Tadaro with Needham. Your line is open.

Yu Gi Ohze, Investor Relations, BitDeer1: Hey, guys. Thanks for taking my question. Not sure if I missed this. On the steel miner sales, do we have the units? Like, is pricing the same as we were kind of guided to before?

Anything kind of change on that? And then I

Analyst: have a follow-up on the HPC side of the business.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Yeah. No, pricing remained relatively consistent last quarter. You know, think from the you know, obviously, sales increased. The amount of hash rate we sold was was quite a bit higher, but pricing was pretty consistent.

Yu Gi Ohze, Investor Relations, BitDeer1: Got it. Understood. Thanks for that, Jack. And then on the HPC start part of the business, so still need to finalize the agreement with the development partner. The development partner, I wouldn’t assume also it’s financing.

So then you get the tenant, you get some debt financing, but then you bring a JV partner in for an equity piece as well. Like, should we anticipate some equity given up in in this process?

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: So yeah. So the the development partner we’re we’re looking to work with, you know, we we were looking for a partner that that would actually bring the the project equity to the table as well. So our our goal is is to finance the whole the majority if of the project at the project level, whether, you know, both project equity, obviously, as well as project finance debt. Got it. Understood.

Thank you for that. Appreciate it. Yeah. Thanks for the question.

Conference Operator: Thank you. Our next question comes from Brian Kinstlinger with Alliance Global Partners. Your line is open.

Yu Gi Ohze, Investor Relations, BitDeer3: Great. Thanks. A little bit of a follow-up on Clarington. After an agreement with a development partner is in place, do you think any other actions need to be completed before a tenant moves forward with their own negotiations?

Harris Nasse, Chief Strategy Officer, BitDeer: Well, whether they need to be completed or not, we will be doing other actions. You know, there will be sort of engineering work done. We’ll order long lead time items, so this what’s called horizontal work, things like that. So, you know, a lot of that stuff that’s sort of agnostic to who the end tenant is and is relatively low cost, we will very likely start on that immediately in parallel with looking for and finding the tenant. Finding that identifying and finding the tenant is, you know, doesn’t take that long, but actually finalizing a lease with the tenant can take, you know, quite a while just because the leases tend to be quite complicated.

Yeah.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: I mean, in a ideal scenario, we would have a you know, we would finalize an agreement and then start that horizontal construction and and ideally be ready to go vertical, you know, once we had a a tenant identified.

Yu Gi Ohze, Investor Relations, BitDeer3: Great. And then, Harris, you mentioned when your comments was that the results will get stronger sequentially. Was that a comment on total revenue and adjusted EBITDA? Or is that commentary just on self mining given it doesn’t sound like the third quarter will produce as much in external sales?

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: I could say, just generally speaking, obviously, we’re looking at a much higher run rate now. At 40 eggs of hash going into the you know, fourth quarter versus the nine we were at coming into the to the beginning of this year. So, you know, the run rate, I think we have, I think, set a new bar on on the self mining side. As Harris said earlier, the the sales side might be a little choppier, just given the the allocation versus from self mining versus external sales. That will kind of vary a little bit more over these next two to four quarters.

After that, like we said, we we would expect it to be more heavily weighted potentially towards sales after that.

Yu Gi Ohze, Investor Relations, BitDeer: Okay. Thank you.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Absolutely.

Conference Operator: Thank you. Our next question comes from Nick Giles with B. Riley Securities. Your line is open.

Analyst: Thank you very much, operator, and good morning, everyone. This is Feder Shabalin on Nick Child. My first one is regarding Clarrington. So you mentioned can you provide a bit more color on what advanced stage of negotiations mean, and when should we expect an an incremental update on the process? Thank you.

Harris Nasse, Chief Strategy Officer, BitDeer: So, I mean, advanced stages means, you know, the final legal documents and final due diligence, things like that. We are hoping that in this quarter, q three, we will have something to announce.

Analyst: Thanks for that. And follow-up question regarding the a four chip. What is the likelihood that this chip design could be adopted for applications beyond Bitcoin mining? So if such adoptions are feasible, what specific applications or use cases would be would be the most suitable? Thank you.

Harris Nasse, Chief Strategy Officer, BitDeer: So the a four, you know, is split now into two a fours. And so if you’re talking about the one using the new technology, you know, we need to do a lot more work to to validate this, but the initial indications are that it should work quite well in many digital applications where there’s very energy intensive usage. So chips that have a lot of compute compared to other. So if a a chip is very high, IO intensive and most of its power is through IO, then it will be less beneficial. If it’s very compute intensive, that’s where, this technology helps the most.

And also you know, but so this is sort of a long term thing. You know, for using this technology on other non Bitcoin chips, you know, you’re talking a couple of years out at least in order to get this adopted by other applications. So I just wanna make sure you’re aware of that timeline.

Analyst: Yeah. Thank you very much, Harit. And Jeff and team continue. Best of luck.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Thanks.

Conference Operator: Thank you. Our next question comes from Bill Papinastu with KBW. Your line is open.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Yes, good morning.

Mike Colonies, Analyst, H.C. Wainwright: Thank you for taking my questions and congrats on the strong equipment sales performance this quarter. Maybe you could just speak to the customer composition as you’re selling, the different series of CLMiters. Are you seeing a lot of customer retention and repurchasing of some of the newer series? Or is that kind of distributed towards new customers? Curious to hear how that’s performing and kind of your expectations.

Thank you.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Hey, Bill. Yeah, thanks for the question. You know, again, we’ve not really disclosed the exact composition of the or any names of customers. What we can say, though, is that it has been a good mix of both public private miners, large and small. Our goal really was to get this the the CMR a two in the hands of as many end users as we can to get just to get more, you know, market feedback.

So while some of the larger, you know, pubcos, we believe will likely be more interested in the same amount of a three, you know, we have been able to distribute some of the a twos for for testing as well.

Mike Colonies, Analyst, H.C. Wainwright: Great. Appreciate that color. My other questions were already answered. Thanks.

Jeff LaBerge, VP of Capital Markets and Strategy, BitDeer: Thanks, Bill.

Conference Operator: Thank you for your participation. There are no further questions at this time. You may now disconnect. Everyone, good day.

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