Bitdeer Technologies Group

Thank you for standing by, and welcome to Bitdeer's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. I would now like to hand the call over to EGSI Investor Relations for Bitdeer. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to BitDeer's third quarter 2025 earnings conference call. Joining me today are Matt Kong, Chief Business Officer, Harris Bassett, 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 third quarter 2025 results, and then cover the company's strategy and a detailed business update. After that, Jeff will cover Bitgear's third 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 Bitgear'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 more complete discussion on forward-looking statements and the risks and uncertainties related to Bitdear'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 and 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 BitGear's IR website. Thank you. I will now turn the call over to Harris.

Harris? Thank you, Yujiya, and good day, everyone. It's great to be with you today. Since our last call, We've made significant progress across all of our strategic priorities, and I'm excited to share how Bitdeer is growing from a global leader in Bitcoin mining into a vertically integrated Bitcoin infrastructure and AI platform. Let's start with the numbers on slide three. Q3 marked a period of rapid growth and strong execution. In the third quarter, total revenue reached $169.7 million. up 173.6% year over year, and up 9.1% sequentially. Gross profit came in at $40.8 million, and adjusted EBITDA increased to $43 million, both substantially improved from Q2. This performance reflects continued execution in our self-mining business. Mass production of our seal miner ASICs drove a 273.1% year over year and 105.4% sequential increase in our average operating self-mining hash rate to 29.1 exahash per second. As of the end of October, we achieved 41.2 exahash per second, surpassing our 40 exahash per second target that we set out at the beginning of the year. Looking forward, we plan to continue deploying our seal miner ASICs to fill our substantial global power pipeline. Through a combination of decommissioning older generation rigs and adding new seal miner ASICs, we expect meaningful growth throughout 2026, which will ensure we remain one of the world's largest Bitcoin miners. In addition to hash rate growth, we expect continual improvement in our fleet-wide energy efficiency to drive increased margins and profitability in the quarters ahead. Our investments in chip design, data center infrastructure, and global power portfolio are paying off, not only in strong financial performance, but also positioning us for the next major wave of demand for compute. Our Bitgear.ai cloud services business continues to scale, reaching an annualized revenue run rate of $8 million at the end of October. As of October 31st, we operate 584 GPUs with an 87% utilization rate. Our newest B200 systems installed late in Q3 are being tested by customers and will drive additional revenue. We are finalizing deployment for NVIDIA's GV200 systems and expect to reach 1,160 GPUs operated by end of the year. We are also in the process of procuring NVIDIA's next generation GB300 and B300 systems. And as we look ahead, Bitgear's growth will be anchored by three strategic pillars, Bitcoin mining, ASIC development, and HPC AI. Together, these represent a vertically integrated, highly defensible platform that leverages our technology expertise and extensive power portfolio. To accelerate our AI footprint, we are taking bold, deliberate steps to simultaneously pursue both colocation and cloud services. With respect to colocation, on our last earnings call, we guided the market that we intended to pursue a joint venture model with a development partner. In September, due to a significant increase in market demand, we let the exclusivity period under our LOI with this development partner expire. This was a strategic decision that gives us greater flexibility and allows us to take a more direct role in the HPC AI data center market and retain more of the economics. We intend to develop data centers using our own internal development team, which will be significantly augmented through strategic hiring alongside highly experienced EPCs and general contractors on a fee basis. Regarding our cloud services business, Over the past 18 months, we have developed a fully vertically integrated AI infrastructure platform in Singapore that includes bare metal GPUs, as well as orchestration, networking, and managed services. These additional services are highly sought after by small and mid-sized enterprise customers who require more than just bare metal offerings and are being underserved in today's market. Now that we have a proven concept in Singapore, we are ready to expand this business line into Malaysia, the U.S., and Europe. Our current customer discussions range from early to mid-stage startups in the biomedical, robotics, and gaming industries to more traditional U.S. enterprise customers seeking to expand their footprint. We will provide additional details as this business model develops over the coming months. Moving now to our HPC AI infrastructure plans. For our 570 megawatt Clarington, Ohio site, we have already begun the design and procurement process for an HPC-AI suitable substation, which is expected to be energized in the first half of 2027. The local utility at Clarington has confirmed the full 570 megawatts will be available by the end of Q3 2026, nearly a year earlier than expected. Given its size, the Clarence site could be utilized for our cloud services business or co-location. At the same time, we have made the decision to convert our 175 megawatt TETL site in Norway into an AI data center by Q4, 2026. Given the announcement of Stargate Norway in July, we have seen a significant increase in inbound interest from potential tenants. So we believe this site could be used for either our cloud services business or co-location. The site was designed by our local Norway team with HPC-AI in mind as the end use, so it already includes liquid cooling capabilities and a more robust electrical infrastructure. Furthermore, it utilizes a substation that is powered by 18 hydropower generators and one wind farm, giving it a high degree of reliability. Our current analysis indicates that the site could be ready to accept GPUs by the second half of 2026 with conversion costs well below US and European AI data center benchmark. Additionally, we plan to expand our Singapore cloud services business into Malaysia. Through a combination of owned and leased opportunities, we anticipate activating up to 15 megawatts of cloud services capacity in Malaysia during 2026. with the ability to expand significantly beyond that if demand persists. We are also upgrading our 13 megawatt Wenatchee, Washington site using a proprietary modular data center technology. This conversion is expected to be completed by Q4, 2026. Further, we have initiated the conversion of 10 megawatts of power capacity at our Knoxville, Tennessee site into an AI data center with targeted completion in Q4 2026. We are evaluating potential US data center rental opportunities to bring our AI cloud services online domestically as early as Q1 2026. In summary, the supply and demand imbalance for AI compute continues to widen, and we expect this shortage to persist well into 2027. Based on our estimates, Under the most optimistic scenario, converting 200 megawatts of our power capacity fully towards AI cloud services could generate an annualized revenue run rate exceeding $2 billion by the end of 2026. Turning to our ASIC business, when we launched our aggressive ASIC roadmap last year, our goal was clear, industry leadership in performance and energy efficiency. Our R&D team has delivered on that promise. In September, we launched the SealMiner A3 series, now among the most energy-efficient products in the market. Mass production has started and initial shipments are expected this month. We anticipate the A3 series will generate meaningful revenue in 2026. Looking ahead, our focus shifts to our Seal04 chip. To de-risk the development and ensure success, we are pursuing two distinct design approaches. The tape-out for the first CL04 design was completed in September, and latest sample verification demonstrated approximately 6 to 7 joules per terahash power efficiency at the chip level under low-voltage ultra-power saving mode. We are targeting mass production to begin in Q1 2026. In the meanwhile, development of the next-generation CL04 is significantly delayed. Next, Let's turn to our energy infrastructure shown on slide seven through 11 in the supplemental investor presentation. In Q3, we continued our rapid build out of our global power and data center portfolio. As of October 2025, we fully energized the Tidal Norway site and the full 500 megawatts in Jigmelein, Bhutan. This brings our total available electrical capacity to approximately 1.6 gigawatts and our total global power pipeline to approximately 3 gigawatts. For our AI cloud services and co-location strategy, we believe we have one of the most attractive power portfolios in the industry. Across our sites in Clarington, Ohio, Tietel, Norway, and Wenatchee, Washington, we will have over 1.3 gigawatts of HPC suitable power by Q2, 2027. This gives us a significant advantage in time to power and the ability to deploy massive GPU capacity rapidly. In September, we announced a new 300 megawatt site in Niles, Ohio. The project remains on track for energization in Q1, 2029. The site spans 41.8 acres and includes an interconnection agreement with First Energy. It is located about 75 miles from our Massillon, Ohio site, and 125 miles from our Clarington, Ohio, site. We continue to secure low-cost power sites globally, reinforcing our competitive advantage in both mining and AI infrastructure. In summary, we are proud of our team's execution this quarter. These efforts are already reflected in our financial results and have established a scalable foundation for long-term growth. Thank you. 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.