Bitdeer Earnings Call: Growth Surges as Margins Suffer

Bitdeer Technologies Group ((BTDR)) has held its Q4 earnings call. Read on for the main highlights of the call.

Bitdeer Technologies Group’s latest earnings call painted a mixed picture for investors. Management highlighted powerful revenue and hash rate growth, successful chip development and an expanding 3 GW power pipeline, yet these positives were tempered by sharp margin compression, a much wider adjusted net loss and heavy operating cash burn amid rising energy costs and project execution risks.

Explosive Revenue Growth Driven by Mining and Hardware

Bitdeer reported Q4 revenue of $224.8 million, up 225.8% year-over-year and 32.5% sequentially. The surge was fueled mainly by expanded self-mining operations and robust sales of SealMiner rigs, underscoring the company’s ability to scale both its proprietary hardware and mining capacity in a tougher Bitcoin price environment.

Self-Mining Scale Cements Market Position

Self-mining revenue jumped to $168.6 million in Q4, rising 306% year-over-year and 28.7% from Q3. Bitdeer exited 2025 with more than 55 EH/s and added roughly 8 EH/s in January, finishing that month above 63 EH/s, which places the company among the largest publicly listed miners by hash rate under management.

Adjusted EBITDA Turns Positive Despite Sequential Dip

The company posted Q4 adjusted EBITDA of $31.2 million, a notable turnaround from a $4.3 million loss a year earlier. Although this was down from $39.6 million in Q3 2025, management framed the positive EBITDA as evidence of growing operating scale even as external pressures weighed on profitability.

Proprietary ASIC Program Accelerates Efficiency Gains

Bitdeer’s hardware roadmap advanced with mass production of the SealMiner A3, with 8.7 EH already deployed and efficiency in the 12.5–14 J/TH range. Together with A2 units at 15–16.5 J/TH, this pushed fleet-wide efficiency to 17.5 J/TH by January, while the CLO4-1 chip moves to rig mass production in Q1 2026 and the SEAL-DL1 Litecoin/Doge chip showed promising early returns.

Massive Power and Colocation Pipeline Underpins Growth

The company now operates over 1.66 GW of capacity and manages a 3 GW power pipeline across key global sites. Flagship projects include Teadle in Norway at 225 MW with attractive PUE near 1.1, the 570 MW Clarington site in the U.S. and the 563 MW Rockdale mining hub, which could be expanded with adjacent greenfield high-performance computing infrastructure.

AI, HPC and GPU Services Emerge as a Second Engine

Beyond Bitcoin, Bitdeer is ramping up AI and high-performance computing through colocation and GPU-as-a-service offerings. The company is expanding a Malaysia GPU cloud site by 10–15 MW, planning roughly 10 MW in Washington and evaluating partial conversion of Knoxville, while emphasizing that large AI builds will only proceed with signed customer contracts.

Financing Access Bolsters Liquidity Amid Heavy Spend

Bitdeer raised $454.5 million of net cash from financing in Q4, including $388.5 million from convertible notes and $141.5 million via equity programs. This left the company with $149.4 million in cash, $83.1 million in cryptocurrencies and $135.6 million in cryptocurrency receivables, giving it a sizable liquidity buffer against its capital-intensive expansion.

Gross Margins Squeezed to Low Single Digits

Despite record revenue, Q4 gross profit fell to $10.6 million as gross margin compressed to just 4.7%, down from 24.1% in Q3 and 7.4% a year ago. Management cited a roughly 13% quarter-over-quarter decline in Bitcoin prices, higher electricity costs and stepped-up depreciation from new mining capacity as key drivers of the deterioration.

Adjusted Net Loss Widens Sharply

Adjusted net loss ballooned to $82.6 million in Q4, more than double the $37.4 million loss in the prior-year quarter and above the $36.3 million loss in Q3. The widening deficit reflects the combination of higher energy and depreciation charges alongside increased operating and interest expenses that outpaced top-line growth.

Rising Operating Costs Pressure Sequential Profitability

Sequential profitability also came under pressure as adjusted EBITDA slipped from Q3 levels. Total operating expenses climbed to $66.3 million versus $60.5 million in Q3 and $42.5 million a year ago, with management pointing to added headcount, holiday-related compensation and greater year-end corporate activity as key contributors.

Energy and Commodity Headwinds Weigh on Economics

The quarter underscored Bitdeer’s exposure to energy markets and Bitcoin volatility, with average electricity costs rising about 5% versus Q3 due to winter pricing in Norway. At the same time, average Bitcoin prices fell roughly 13% sequentially, reducing realized revenue per coin mined and magnifying the impact of fixed and semi-fixed costs.

Depreciation Policy Change Hits Reported Margins

Management also adopted a more conservative view on asset life by shortening the depreciation schedule for mining rigs from five years to three years. While this move is noncash, it significantly increased depreciation expense, further compressing reported gross margins and net income metrics during a heavy investment phase.

Large Operating Cash Burn Raises Risk Questions

Net cash used in operating activities reached $599.5 million in Q4, highlighting the capital intensity of Bitdeer’s current growth strategy. The outflows were driven by SealMiner supply chain and manufacturing spend, substantial electricity bills, corporate overhead and interest, raising investor focus on cash management and returns on recent investments.

Leverage and Project Risks Add to Investor Caution

Bitdeer ended the quarter with $1.0 billion in total borrowings, excluding $501.1 million of derivative liabilities tied to its convertible notes. Litigation at the Clarington site poses potential timing risk for development and tenant agreements, and management acknowledged that many planned GPU and colocation deployments still depend on securing customer contracts.

Guidance Signals Continued Build-Out and Efficiency Focus

Looking ahead, Bitdeer guided to 2026 crypto mining data-center infrastructure spending of $180–$200 million, excluding SealMiner and AI colocation capital expenditures. The company plans to keep scaling from its 1.66 GW base and 3 GW pipeline while maintaining a contract-first approach to GPU deployments, ramping SealMiner A3 and CLO4-1 production and transitioning to GAAP reporting starting in Q1 2026.

Bitdeer’s earnings call underscored a classic high-growth, high-risk profile, pairing explosive top-line and hash rate expansion with serious profitability and cash flow challenges. For investors, the story now hinges on whether the company can convert its hardware advances, massive power pipeline and AI ambitions into sustainable returns without overstretching its balance sheet.