Bitdeer (NASDAQ: BTDR) revenue jumps 89% but gross margin falls and net loss widens

What happened

Bitdeer Technologies Group (NASDAQ: BTDR) grew third-quarter revenue 89% to $320.7 million, but gross profit fell and the net loss widened.

The company reported unaudited results for the quarter ended Sept. 30 on Nov. 10. Revenue was up from $169.7 million a year earlier and 40% above the $228.8 million booked in the second quarter. That is $151.0 million more than a year ago.

Adjusted EBITDA rose 173% to $69.6 million from $25.5 million, a gain of $44.1 million. It was up 124% from $31.1 million in the second quarter. The company's measure leaves out fair value changes and share-based compensation, among other items.

Key numbers

Metric	Latest	Change	Source
Total revenues, Q3 2026	$320.7 million	from $169.7 million, +89%	Bitdeer Q3 2026 press release (Exhibit 99.1)
Adjusted EBITDA, Q3 2026	$69.6 million	from $25.5 million, +173%	Bitdeer Q3 2026 press release (Exhibit 99.1)
Gross margin, Q3 2026	3.4%	from 23.4%	Bitdeer Q3 2026 press release (Exhibit 99.1)
Net loss, Q3 2026	$125.5 million	from $30.1 million	Bitdeer Q3 2026 press release (Exhibit 99.1)
AI Cloud revenue backlog, Sept. 30, 2026	approximately $2.9 billion		Bitdeer Q3 2026 press release (Exhibit 99.1)
Cash, cash equivalents and restricted cash, Sept. 30, 2026	$213.7 million	from $217.2 million	Bitdeer Q3 2026 press release (Exhibit 99.1)

Read more: Bitdeer Technologies Group (BTDR) company research

Why it matters

Growth did not reach gross profit. Gross profit was $10.8 million against $39.7 million a year earlier. Gross margin was 3.4% against 23.4%.

Cost of revenues rose to $309.9 million from $130.0 million. The company said a larger fleet used more power, which raised electricity costs, and newly deployed mining rigs added depreciation. Self-mining revenue was $217.5 million. A 173.5% rise in average hashrate to 79.6 EH/s helped, and a lower average Bitcoin price held it back.

OptimistFi has argued that Bitdeer's case depends on turning owned mining and hosting capacity into durable gross profit before capital spending overwhelms shareholders. A margin this thin on rising revenue shows that has not yet happened, though Adjusted EBITDA is moving the right way.

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Where the net loss came from

The net loss was $125.5 million, up from $30.1 million a year earlier. It includes a non-cash $54.6 million loss on the fair value of a Bitcoin-collateralized loan from a related party. The company tied that mainly to Bitcoin price moves.

Other items cut both ways. A $17.6 million gain on derivatives tied to power purchase arrangements in Norway helped. It is a fair value gain, not an operating improvement. A $9.5 million loss on repurchasing a membership customer's capacity at Rockdale hurt. Interest expense rose to $34.3 million from $20.2 million on more convertible note and related-party borrowing.

The AI Cloud backlog against the balance sheet

AI Cloud revenue backlog counts expected revenue under signed customer commitments. It has grown to approximately $2.9 billion, with approximately 332 IT MW of capacity secured. The company says backlog is not a U.S. GAAP measure and depends on data center energization, GPU deployment and customer performance.

Recognized AI Cloud revenue was $20.4 million in the quarter, up from $1.8 million a year earlier. The backlog is far larger than what has been booked so far.

Operating cash flow was $6.0 million. A $263.8 million rise in deferred revenue from customer advance payments for AI Cloud services drove most of it. Capital expenditures were $478.0 million. Cash, cash equivalents and restricted cash fell to $213.7 million from $496.3 million at June 30. Borrowings stood at $1.95 billion, and digital assets and related receivables were $387.0 million.

Some timelines slipped. Energization at Knoxville, Tennessee, a 55 MW site, is now targeted for Q4 2027 because of delivery delays for critical power and electrical equipment. Wenatchee, Washington is now targeted for H2 2028. Legal proceedings filed by a neighboring company may affect timing at the 570 MW Clarington, Ohio site.

Tydal and Malaysia contracts

At Tydal, Norway, the filing lists a $4.7 billion, 16-year AI/HPC data center lease with Volta for phase 1. The tenant can end it with no fee at 10 years. Potential total contract value is approximately $8.0 billion if the tenant uses its one-time 8-year lease extension.

In Malaysia, offtake commitments at the A201 site cover more than 70% of capacity. They represent more than $1.7 billion of expected revenue over 5 years. At A102, 100% of GPU capacity is contracted under five-year commitments worth more than $800 million.

What's next

Tydal phase 1 is listed as ready for service in Q4 2026, and the company says Tydal construction remains on target. The 179 MW load increase at Rockdale also begins phased energization in Q4 2026.

Meeting the Q4 date would be the first test of how fast contracted backlog turns into revenue. Another slip would add to the Knoxville and Wenatchee delays. Chief Financial Officer Michael G. Potter listed the priorities as delivering Tydal, completing financings and bringing Malaysia online.

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