Bitdeer revenue jumps 89% as gross margin falls to 3.4%

By Marcus Bennett

$320.7 million of third-quarter revenue lifted Bitdeer Technologies Group (NASDAQ: BTDR) 89% year over year, but gross margin fell to 3.4% and the net loss widened to $125.5 million.

The company released unaudited results for the quarter ended Sept. 30, 2026, on Nov. 10, 2026. Revenue rose 40% from $228.8 million in the second quarter and increased $151.0 million from a year earlier.

What drove the 89% revenue increase?

Self-mining revenue reached $217.5 million. Average hashrate (mining computation measured in exahashes per second) climbed 173.5% to 79.6 EH/s, while a lower average Bitcoin price offset part of the operating benefit.

AI Cloud revenue rose to $20.4 million from $1.8 million. The two disclosed revenue engines show why headline growth did not translate directly into gross profit.

Why did gross profit fall despite faster sales?

Gross profit fell to $10.8 million from $39.7 million, leaving gross margin (gross profit divided by revenue) at 3.4% versus 23.4%. Cost of revenues rose to $309.9 million from $130.0 million.

Bitdeer attributed the increase to higher electricity consumption from a larger fleet and depreciation on newly deployed mining rigs. OptimistFi said Bitdeer must turn owned mining and hosting capacity into durable gross profit before capital spending overwhelms shareholders.

Adjusted EBITDA (a non-GAAP measure excluding fair-value changes, share-based compensation and other items) rose 173% to $69.6 million from $25.5 million, a $44.1 million gain. It also increased 124% from $31.1 million in the second quarter, moving in the right direction despite the gross-margin contraction.

What widened the net loss?

The net loss widened to $125.5 million from $30.1 million, including a non-cash $54.6 million fair-value loss on a Bitcoin-collateralized loan from a related party. Bitdeer tied most of that loss to Bitcoin price moves.

A $17.6 million fair-value gain on derivatives linked to Norwegian power-purchase arrangements supported the result, although it did not improve operations. A $9.5 million loss from repurchasing a membership customer’s capacity at Rockdale hurt, while interest expense rose to $34.3 million from $20.2 million on more convertible-note and related-party borrowing.

How much of the AI backlog is contracted?

AI Cloud revenue backlog (expected revenue under signed customer commitments) reached approximately $2.9 billion, supported by approximately 332 IT MW (megawatts of information-technology capacity) secured.

Bitdeer said the measure “is not a U.S. GAAP measure and depends on data center energization, GPU deployment and customer performance.” GPU means graphics processing unit; the qualification ties the headline total to energization, equipment deployment and customer execution.

Recognized AI Cloud revenue reached $20.4 million, compared with $1.8 million a year earlier, leaving the contracted backlog far larger than revenue recognized so far.

What did cash flow and the balance sheet show?

Operating cash flow (cash generated by operations) totaled $6.0 million. A $263.8 million increase in deferred revenue (customer advance payments not yet recognized as revenue) drove most of that inflow, while capital expenditures reached $478.0 million.

Cash, cash equivalents and restricted cash ended at $213.7 million. The results table lists $217.2 million as its comparison, while the balance-sheet discussion compares the quarter-end balance with $496.3 million at June 30.

Borrowings stood at $1.95 billion, and digital assets plus related receivables totaled $387.0 million. Together, the figures show a capital-intensive build alongside a large contracted pipeline, but they do not establish when gross profit will follow.

Which projects face schedule risk?

Bitdeer now targets fourth-quarter 2027 to energize the 55 MW Knoxville, Tennessee, site after delays in critical power and electrical equipment. Wenatchee, Washington, moved to the second half of 2028, while a neighboring company’s legal proceedings could affect timing at the 570 MW Clarington, Ohio, site.

Management still targets Tydal phase 1 for service in the fourth quarter of 2026 and says construction remains on target. A 179 MW load increase at Rockdale also begins phased energization in the fourth quarter.

What do the contracts contribute?

At Tydal, Norway, the filing lists a $4.7 billion, 16-year AI and high-performance-computing data-center lease with Volta for phase 1. The tenant may terminate without fee after 10 years, while a one-time eight-year extension could raise potential total contract value to approximately $8.0 billion.

Malaysia commitments provide a nearer revenue test:

• A201: offtake commitments (customer purchase commitments) cover more than 70% of capacity and represent more than $1.7 billion of expected revenue over five years.
• A102: five-year commitments cover 100% of graphics processing unit capacity and exceed $800 million.

What must happen next?

Meeting Tydal’s fourth-quarter target would provide the first test of how quickly contracted backlog becomes revenue. Another delay would compound the schedule setbacks already affecting Knoxville and Wenatchee.

Chief Financial Officer Michael G. Potter said the priorities are “delivering Tydal, completing financings and bringing Malaysia online.” Those milestones determine whether Bitdeer can convert contracted demand into gross profit before financing and deployment costs absorb the benefit.