Bitdeer Technologies Group

Welcome to the Bitdeer Second Quarter 2025 Earnings Call. At this time, all participants are in listen-only mode. After the speaker's 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 like to turn the call over to Yugi Aze and Vesta Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Bitdeer's Second Quarter 2025 Earnings Conference Call. Joining me today are Jihan Wu, Chairman and CEO, Matt Kong, Chief Business Officer, Harris Nasset, Chief Strategy Officer, and Jeff LeBurge, VP of Capital Markets and Strategy. Harris will begin today by providing a high-level overview of Bitdeer's Second Quarter 2025 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 Bitdeer'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 Bitdeer's business, please refer to its filings with 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 Bitdeer's Investor Relations website. Thank you. I will now turn the call over to Harris. Harris?

Thank you, Yujia, and good day, everyone. Thanks for joining our second quarter 2025 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 Q2 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 $155.6 million, up 122% sequentially from Q1 and up 57% year over year. Gross profit was $12.8 million, and adjusted EBITDA was $17.3 million, up materially from Q1. This significant improvement in our results is from strong execution in our self-mining business and commercial sales of our steel miner ASICs. Mass production of our steel miner 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 steel miner A2 mining rig to external customers, recognizing $69.5 million in revenue in Q2. As of the end of 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 steel miner 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 steel miner 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 40 exahash of self-mining hash rate by the end of 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 ASIC roadmap, we understood that building chips alone wasn't sufficient. To win in this market, we have to achieve industry leadership in performance and energy efficiency. Today, we are proud that our dedicated R&D team has executed this plan with precision, delivering three of the four chips on schedule and on spec. With our latest steel miner A3, 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 steel miner A3 mining machines are expected to be available for shipment in October. We expect steel miner A3 to contribute to our revenue through both self-mining and external sales in 2026. Looking ahead, our R&D efforts have now pivoted to the steel 04 chip. We are taking a dual-track approach to steel 04, with two completely independent designs to ensure success. The first steel 04 chip, using a more traditional circuit architecture, has already been taped out, and we expect initial sample wafers to come back in Q3 2025. Our second steel 04 chip will be a completely new, next-generation architecture targeting breakthrough efficiency of approximately 5 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 steel 04 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 steel 04 chip development, as well as added senior roles in legal and IP licensing. We are extremely excited about the steel 04. Together with our steel miner A3 mining rig, we believe these two chips will firmly position Bitgear 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 8 and 9 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 361 megawatts of data center capacity for self-mining, of which 126 megawatts was at our Tidl, Norway site, and 235 megawatts in Jigmaling, Bhutan, bringing our total available electrical capacity to approximately 1.3 gigawatts. We expect the remaining 49 megawatts in Tidl and 265 megawatts in Jigmaling to be energized in Q3, which will bring our total available power capacity to nearly 1.6 gigawatts. 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 570 megawatts of capacity. 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. Blocking 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 HBC 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 re-emphasize our guidance for our self-mining hash rate. Given the steady rollout of our Sealminer A2 mining rig, we remain on track to reach 40 exahash by October. Furthermore, as I mentioned earlier, wafer supply has improved for both our Seal O2 and Seal O3 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 ASIC roadmap, our self-mining infrastructure and deployment plan, and our entry into the massive ASIC market opportunity. We have also made significant strides in our HBC AI strategy. As we move into the second half of 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 LeBurg, our VP of Capital Markets and Strategy, to go over our detailed financial results for the quarter.