Bitdeer Technologies Group

Good day, and thank you for standing by. Welcome to the Big Ear Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. As with the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising you how to raise. To withdraw your question, please press star 1-1 again. Please be advised that today's conference will be recorded. I'd like to hand the conference over to your first speaker today, John Ragazzino, External Investor Relations for Bitdeer. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Bitdeer Technologies' fourth quarter 2025 earnings conference call. Joining me today are Jihan Wu, Chief Executive Officer, Matt Kong, Chief Business Officer, and Harris Baffet, Chief Strategy Officer. Harris will provide a high-level overview of Bitdeer's fourth quarter 2025 results, and discuss the company's strategy, provide a detailed business update, and review the financial results for the quarter. Jihan, Matt, and Harris will be available for questions after the formal remarks. To accompany today's call, we have provided a supplemental investor presentation available on Bitgear's investor relations website under webcasts and presentations. Before management begins their formal remarks, I'd 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 more complete discussion on forward-looking statements and the risks and uncertainties related to Bitdeer's business, please refer to the company's filings with the SEC. In addition to discussing results calculated in accordance with International Financial Reporting Standards, or IFRS, we will also reference 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 published earlier today, which can be found on Bitdeer's IR website. With that, I'll now turn the call over to Harris.

Thank you, John, and good day, everyone. It's great to be with you today. The fourth quarter of 2025 marked a defining period of execution and strategic progress for Bitdeer. We achieved critical milestones across our three strategic pillars, and position the company for sustained growth as a vertically integrated Bitcoin and AI infrastructure company. I'll start with a brief overview of our financial performance for the quarter. Fourth quarter total revenue reached $225 million, up 226% year over year and 33% sequentially. Growth profit totaled $10.6 million and adjusted EBITDA was $31.2 million for the quarter. While both metrics declined sequentially, the results primarily reflect a combination of lower average Bitcoin pricing, modestly higher electricity costs, substantially higher depreciation expense due to the rapid expansion of our self-mining capacity, and further investment in new talent to support our growing AI HPC initiatives. I will discuss these factors in greater detail later in the call. Let me begin with a brief review of our power and infrastructure portfolio. We continue to make meaningful progress during the quarter, advancing a global portfolio of sites that we believe are well suited to support both large-scale Bitcoin money and next-generation AI and HPC workloads. Across regions, our focus remains on developing power-rich, capital-efficient infrastructure that provides flexibility, speed to market, and long-term strategic optionality. From an energy infrastructure perspective, execution during the quarter remained on track. At the end of January, we had over 1.66 gigawatts of capacity online and a total global power pipeline of 3 gigawatts. We believe this represents one of the most attractive and AI-suitable power portfolios in the industry. and provides us with a vast opportunity as the demand for such capacity continues to grow. Over the past several months, we've seen a significant shift in market dynamics around AI data center development. Demand for large-scale colocation capacity has increased substantially, and we've responded by refining our approach to better align with this opportunity. Therefore, we are currently prioritizing colocation services for sites in Norway and the U.S. that are suitable for large-scale AI HPC deployments. Let me walk through a few sites and where we stand with our development plans. First, Tito, Norway represents our most near-term co-location opportunity. This 225 megawatt facility was originally constructed to Tier 3 data center specifications, which puts us in a favorable position for conversion to AI workloads. We estimate the retrofit will require much less incremental capital expenditure to add uninterruptible power supply systems, backup batteries and generation, as well as some additional cooling capacity compared to industry benchmarks for Greenfield Tier 3 data center development, which typically run in the $8 million to $12 million per megawatt range. The site benefits from hydropower with attractive economics. Independent 100 megawatt transformers provide redundancy. We are currently in lease discussions with multiple counterparties and expect to be in a position to announce a signed lease agreement for TETL as soon as possible in 2026, although the exact timing is very difficult to predict. This site should be capable of supporting initial test GPU deployments in late 2026 and first production GPUs expected in early 2027. Second, our 570 megawatt site in Clarington represents one of the larger AI data center development opportunities in the United States. We've made progress on two fronts here. First, the local utility has accelerated our interconnection timeline. Second, we are currently in discussion with multiple prospective tenants. These are well recognizable companies in the space and the discussions are progressing. While litigation has recently been filed, that could potentially delay development at this location, we believe that we have meritorious claims and a strong defense and will pursue an expedient solution. Given the scale of this site, even a partial or first-phase lease would represent a significant milestone for Bitdeer and would provide substantial contracted revenue while de-risking our development capital. Third, at Rockdale, We're pursuing a strategy that allows us to maintain our current Bitcoin mining operations while developing new HPC capacity. We are evaluating the acquisition of adjacent land to our existing facility where we could potentially construct a purpose-built HPC data center. This approach would minimize disruption during data center development to our 563 megawatt mining operation, which continues to generate revenue. The Greenfield HPC build would be designed from the ground up for AI workloads. The Rockdale site benefits from its location in the ERCOT market, which provides operational flexibility. We are currently talking with prospective co-location tenants for this site. The dual-track approach, maintaining Bitcoin mining while developing HPC capacity, reflects our commitment to both businesses and our ability to optimize our power portfolio across use cases. While we're prioritizing co-location for our larger sites, we continue to see opportunity in GPU as a service for targeted markets. We're expanding our cloud platform in Malaysia by 10 to 15 megawatts, building on the success we've had in Singapore, serving customers in biomedical, robotics, and gaming sectors who need fully managed, orchestrated infrastructure. In the United States, we're planning to add 10 megawatts of GPU capacity in Washington State and are evaluating a partial conversion of our Knoxville site from Bitcoin mining to GPU cloud. I want to be clear that the scale of our long-term US GPU as a service expansion is predicated on signing customer contracts. We do not anticipate deploying large speculative capacity. We expect all major GPU deployments will be backed by committed revenue from enterprise customers who are seeking meaningful capacity with comprehensive managed services. This disciplined approach ensures we're deploying capital where we have revenue certainty. A key element of our strategy is how we're approaching data center development. We've built an internal development team with experience in very large data center construction, and we're augmenting that team through strategic hires. We're working with experienced EPT contractors and general contractors on a fee basis rather than through joint venture arrangements. This gives us greater control over timelines and specifications. And importantly, it allows us to retain more of the economic value these assets generate. As we look ahead, Bitgear's growth will continue to be anchored by our three strategic pillars, Bitcoin mining, ASIC development, and HPC AI. Together, these represent a vertically integrated highly defensible platform that leverages our deep technology expertise, proprietary chip design capabilities, and extensive global power portfolio. The supply-demand imbalance for AI compute continues to widen, and we expect this shortage to persist well into 2027. Time to power is a critical variable, and we believe BitGear is exceptionally well-positioned to serve customers seeking both near-term and mid-term capacity. On the Bitcoin mining side, the rapid expansion of our self-mining platform continues. We exited the year with more than 55 exahash per second of self-mining hashrate. And in the month of January alone, we brought another 8 exahash per second online, exiting the month of January at over 63 exahash per second. This firmly establishes Bitgear as one of the largest publicly listed Bitcoin miners by total hashrate under Mandarin. supported by the disciplined rollout of our seal miner fleet. Accelerated deployment of seal miner rigs has driven material improvements in fleet-wide efficiency. The seal miner A2 and A3, being actively deployed in our shelf mining business, operate at approximately 15 to 16.5 joules per terahash and 12.5 to 14 joules per terahash, respectively, and represent industry-leading power efficiency. As these next-generation rigs replace legacy third-party equipment, our blended fleet efficiency continues to improve, with our overall fleet-wide efficiency currently standing at 17.5 joules per terahash as of January 31, 2026. As steel miner penetration increases throughout 2026, we expect our overall fleet-wide efficiency to continue to improve, enhancing our mining margins. Looking ahead, Our self-mining operations are not plateauing. Our investments in chip design are delivering tangible results. During the quarter, we commenced mass production of the seal miner A3 series. Initial shipments began in November, and we have deployed a total of 8.7 exahash of our seal miner A3s to date. As we continue to retire older generation third-party rigs, we expect the A3 series to continue to meaningfully contribute to our fleet efficiency improvements and growth throughout 2026. On the R&D front, our CLO4-1 chip was completed back in September. The CLO4-1 represents a meaningful step forward in efficiency and positions Bitdeer to maintain technological leadership as the industry continues its relentless drive towards lower power consumption per unit of hash rate. Mass production of mining rigs based on the SEAL-04-1 chip will begin in Q1, 2026. SEAL-04-2 chip design remains under development at our US-based design center. Additionally, we have successfully taped out a new Litecoin chip, SEAL-DL1, designed for DOGE and Litecoin mining. The initial test results of SEAL-DL1 have exceeded comparable rigs in both energy efficiency and hash rate. Based on the recent market conditions, the SEAL DL1 generates higher fiat-based returns per megawatt than our SEAL Miner A2. Preparations for UFA SEAL Miner manufacturing remain in progress. This initiative is a core component of our vertically integrated strategy and aligns with both operational resilience objectives and evolving trade and supply chain dynamics. Let me walk through our detailed financial results for the quarter. Before I begin, I'd like to remind everyone that all figures I refer to today are in U.S. dollars. Fourth quarter consolidated revenue was $224.8 million, up 225.8% year-over-year and up 32.5% sequentially. Year-over-year growth and sequential growth in revenue was primarily driven by significantly higher self-mining hash rates as a result of continued seal miner deployment, as well as contributions from seal miner sales offset in part by slightly lower Bitcoin prices for the quarter. Self-mining revenue was $168.6 million compared to $41.5 million in Q4 2024 and $130.9 million in Q3 2025. representing year-over-year growth of 306% and a sequential growth of 28.7%. The continued growth from Q3 2025 levels reflects a significant increase in average operating hash rate and associated Bitcoin production during the quarter, offset in part by 13% lower average Bitcoin prices quarter-on-quarter. Kilometer sales revenue was $23.4 million, up 105.4% over the $11.4 million reported in Q3 2025. Total gross profit for the quarter was $10.6 million, reflecting a gross margin of 4.7% versus 7.4% in Q4 2024, and $40.8 million, or 24.1%, in Q3 2025. The significant decline in gross margin reflects the combined impact of several drivers during the quarter. First, obviously, we experienced 13% lower Bitcoin prices during the quarter, along with the gradual increase of the global hash rate. Second, on the cost side, we experienced an approximately 5% increase in average electricity costs per unit during the quarter when compared to Q3 2025, mainly due to the seasonal winter pricing dynamics at Norway sites. Third, the growth in our self-mining hash rate comes with a concurrent non-cash depreciation expense associated with this fleet of new miners. Additionally, during the quarter, we changed our methodology for calculating depreciation expense to reflect a more conservative approach. We now depreciate rigs using a three-year straight line method versus our prior assumption of a five-year depreciable life for hardware. Total operating expenses for the quarter were $66.3 million compared to $42.5 million in Q4 2024 and $60.5 million in Q3 2025. The sequential increase in operating expenses was primarily driven by the following factors compared to Q3. We added more headcount to support both mining site operations and our AI infrastructure expansion, incurred additional holiday season compensation, along with an increase in year-end general corporate activities. These expenditures reflect the operational requirements of our growing infrastructure footprint and the resources necessary to execute on our strategic initiatives. Other operating expenses for the quarter was 43.8 million, compared to 3.7 million in Q4 2024 and other operating income of 26.5 million in Q3 2025. This was largely attributable to the fair value change of Bitcoins pledged for the Bitcoin collateralized loan since Q3 2025. Other net gain for the quarter was 208.9 million. compared to other net loss of $479.8 million in Q4 2024 and $238.5 million in Q3 2025. This is largely attributable to non-cash fair value change of derivative liabilities related to the convertible senior notes issued in November 2024, June 2025, and November 2025. Adjusted net loss was 82.6 million versus 37.4 million in Q4 2024 and 36.3 million in Q3 2025. The increase in loss was primarily due to higher energy and depreciation costs, higher operating and interest expense, partially offset by the year-over-year higher revenue. Adjusted EBITDA was 31.2 million versus negative $4.3 million in Q4 2024, and positive $39.6 million in Q3 2025. The sequential decline was primarily driven by higher energy costs and higher operating expenses attributed to salaries and wages for recent additions to our headcount, as well as a number of elevated costs associated with year-end holiday allowance and year-end general corporate activities. To provide a better sense of our G&A expense on a run-rate basis, our Q4 2025 results reflect approximately $3 million of salary, wage, and benefits expense, which will largely be recurring, as well as another $6 to $7 million in consulting, legal, and travel expenses, which can vary significantly from quarter to quarter. Net cash used for operating activities was $599.5 million, primarily driven by steel miner supply chain and manufacturing costs, electricity costs from the mining business, general corporate overhead, and interest expense. Net cash generated from investing activities was $97.9 million, which includes $50.7 million of capital expenditures relating to data center infrastructure construction, GPU equipment procurement, and tariffs and freight for mining rigs delivered to the data centers, and 150.6 million of proceeds from the disposal of cryptocurrencies. Net cash generated from financing activities for the quarter was 454.5 million, which resulted primarily from 388.5 million of proceeds from the issuance of convertible senior notes, 168 million in borrowings from a related party, and 141.5 million of proceeds from shares sold under our ATM and ELOC program, offset by 171.1 million of repayments of borrowings. For the full calendar year 2025, capital expenditures for the continued build out of our global power and data center infrastructure totaled 176 million. Looking to full year 2026, we anticipate total infrastructure spend in the range of $180 to $200 million for crypto mining data center construction. Please note that this guidance covers power and crypto mining data center infrastructure only and does not include CapEx for steel miners and GPU. AI cloud and co-location capital expenditures are also not included. Turning to our balance sheet and financial positions, We exited the year with $149.4 million in cash and cash equivalents, $83.1 million in cryptocurrencies held at cost, less impairment, $135.6 million in cryptocurrency receivables held at fair market value, and $1.0 billion in borrowings excluding derivative liabilities. Derivative liabilities were $501.1 million, which relate to the November 2024 June 2025 and November 2025 convertible senior notes. This represents 171.4 million reduction compared to the prior quarter, reflecting a non-cash fair value adjustment driven by the change in our stock price and settlement for partial principal of November 2024 convertible senior notes. As I mentioned earlier, this does not impact our liquidity or operations. Regarding our outstanding ATM and ELOC facility, we received approximately 143.6 million in growth proceeds during the quarter, with approximately 6.7 million additional shares issued. We have exercised disciplined capital allocation throughout the year, using the ATM and ELOC opportunistically to support our growth initiative while minimizing dilution. As a final note to our financial update, We wish to note that starting in Q1, 2026, we will begin to use GAAP instead of IFRS as our accounting standard. In summary, we are proud of our team's execution this quarter and throughout 2025. I want to express my deep pride in what our team has accomplished this year. We've established Bitgear as one of the world's largest publicly listed Bitcoin mining operators by total hash rate under management. Our leadership position in self-mining and our proprietary seal miner technology provide multiple paths to value creation that few, if any, competitors can match. Our pipeline of developed and contracted power capacity gives us a meaningful competitive edge in serving a variety of customers. The co-location opportunity ahead of us is immense, and we are pursuing it proactively. We enter 2026 with strong operational momentum, a differentiated asset base, and a team that has proven its ability to execute at scale. We're excited about what lies ahead and remain committed to delivering long-term value for our shareholders. Thank you, operator. Please open the call for questions.

Thank you. At this time, we'll conduct the question and answer session. As a reminder to ask a question, you need to press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster. And our first question comes from the line of Nick Giles of BYD Securities. Your line is now open.

Yeah, thank you so much, operator. Good morning, everyone. Harris, really appreciate the comprehensive update, especially on the co-location side. And my first question was just, you know, I'm sure you're speaking to a range of customers and You know, at this point of negotiations or discussions, what's really the main items that are being discussed? Is it down to price, duration, timing? Is there still a lot of work ongoing around design? Just any additional color on kind of where you stand in the process.

Well, it's different with different potential counterparties and where all of those things that you mentioned are being discussed. maybe not with the same counterparty, but, you know, I hesitate to say too much about these discussions. They're sensitive and, you know, very active at this time. So, you know, we feel pretty confident that we're going to get co-location deals done in the near future. Predicting that timeframe is going to be hard. And, you know, the discussions are pretty intense with several counterparties.

No, I understood. That's helpful. And just my second question was, when we think about financing, you made some important comments there on, you know, having a larger share of the economics. But what should we be expecting in terms of debt cost of capital? And what kind of credit enhancements are you looking at, if any?

Cost of capital for these projects, for the co-location projects, will be very significant. much determined by the counterparties and the exact terms of the deal. So I think that's hard to predict right now until we announce which of these deals are done with which counterparties. Was that responsive to your question? I'm not sure if that's what you were asking.

Yeah, no, that's very fair. I was just curious, you know, what type of credit enhancements you might be looking at or which ones you might be prioritizing, whether it be, you know, we've seen a lot of different backstops out there and other ways which you can lower the cost of capital?

I mean, that's an important part of any deal. And, you know, because it does determine the cost of development to a large extent. And so we are, you know, we're looking at many different approaches here. It's a very important part of getting the deal done right. So it is something that we're focusing on as well. I can't really say which ones are It depends a lot on the counterparty and it depends on, you know, there's a number of ways to do this. Most of them have been already done in the marketplace. And, you know, I don't think you'll see anything too dramatically different from those when we announce.

Got it. Understood. Well, again, I appreciate the update and continued best of luck. Thank you.

Thank you. One moment for our next question. Our next question comes from the line of Mike Holliness of HC Windriding Co. Your line is now open.

Hi, good morning, guys. Thank you for taking my questions today. First one for me on the infrastructure piece. It sounds like you're pretty far along in negotiations for a potential COLO deal at the Peel site. Curious what type of customers you're in discussions with specifically at that campus. And, Harris, if I heard correctly, it sounds like the full retrofit for the 225 megs could be completed by the end of this year. Is there a PUE you guys are assuming that number? I know it's built with Tier 3 standards in mind, but any additional color would be helpful there.

Yeah, that is correct. We do expect completion of that TETL Norway site at the end of this year and then installation of production GPUs at the beginning of next year. And... The PUE at that site is actually very low, which is one of the big advantages of that site. It's 100% hydropower, it's a nice cold climate, and there's chilled water available from a nearby lake. So the PUE there, for estimation purposes, is around 1.1, dramatically better than most locations.

Got it. And a typical customer profile, so that sites specifically, I know you're in discussions with a range of customers across the portfolio. I'd be just curious, you know, with that international facility, the type of customers you're looking at.

Yeah, I mean, there's some difference, but, you know, there's still a lot of overlap with the customers there versus customers in the U.S. So, but, you know, I really don't want to say too much about who we're talking to and And the exact nature of those deals, they're fairly sensitive negotiations at this point.

Understood, understood. And then as it relates to the Bitcoin mining business, you guys are one of the few public miners that continue to rapidly expand your self-mining capacity. How should we think about growth in this business in 26, particularly as you look to pursue these AI infrastructure deals across parts of the portfolio?

So one thing to add say is that we are long-term believers in Bitcoin. Of course, Bitcoin is in a little bit of a down cycle right now, but long-term we believe in Bitcoin and we will continue to invest in our Bitcoin mining capacity. We haven't given any projections for what the total hash rate for our company might be by the end of this year or in any future quarter yet. We're still evaluating that and We may project that at a later time, but at this time, we don't have any projections to share publicly for future growth of our hash rate.

Got it. Thanks, LeCarlo Harris, and best of luck with these opportunities. Thank you, Mike.

Thank you. One moment for our next question. Our next question comes from the line of Kevin Cassidy of Rosenblatt Securities. Your line is now open.

Yes, thanks for taking my question and congratulations on all this capacity you've activated. But maybe along those lines that was asked before, with the lower Bitcoin prices, is there a price where you slow your mining activity because costs are higher versus what the hash price would be?

I'm sure there is such a price. We just haven't reached it yet. Our efficiency of our fleet keeps improving And so it also, you know, as price goes down, it wouldn't be the entire fleet. Some parts of the fleet, you know, because of the efficiency and because of the energy price at that location can continue to operate for quite some, you know, quite some even further decrease beyond here. And then, you know, some of the older machines that have been around for several years, those could be turned off first. In fact, just in our normal upgrade cycle, we will be replacing those. We haven't reached that point now, and I don't anticipate that we will, but of course there is such a price. It's just much lower than what we're at now.

Okay, great. That's good information. I guess as you keep lowering your costs, then you can handle lower Bitcoin prices. But just as another topic, is the GPU as a service, is there a good market for the, say, N-1 GPU clusters rather than spending money on the very leading edge of GPUs? Is there still a need for GPU as a service for the older GPUs?

Yes, there is. We are, though, however, typically pursuing the latest and greatest GPUs. But, yeah, I mean, we still get demand for, you know, even our oldest H-100s that we have in Singapore. Okay, great. Thanks.

Thank you. One moment for our next question. Our next question comes from the line of Darren of Tahi. Ross, your line is now open.

Yeah, good morning. Good evening. Thanks for sharing my questions. Harris, could you dive a little bit more into sort of the scale and scope of the hires you've made for digital infrastructure towards the end of the year that you spoke to, and then kind of the cadence of continued investment in maybe Q1 and into 2026? I guess, at what point do you feel like you have an adequate team to kind of attack this opportunity?

Yeah, I mean, we're very pleased with some of our recent hires. We've hired people with direct expertise in AI, in cloud services, and a lot of those folks have been in the United States, but also in Asia. The team is, you know, the number of people dedicated to this has grown dramatically. I don't think I have an exact number, but we continue to hire. I don't think we've... reached a place where we think we have enough folks yet. So we're still looking for people, especially on the side of the engineering part of building data centers that are still open recs there. So I expect that we will continue to hire throughout the year. And a lot of those folks will be in the US. But we've also done significant AI hiring in Asia.

Got it. And then second question on the Rockdale site, sort of twofold. In terms of land acquisition for that, kind of where are you and what's the timeline on process? And then I know Encore is supposed to put another substation in, and I think you guys have spoken to additional capacity there. I think it's in the 100-some-plus megawatts area. But in light of kind of the seesaw that's going on with ERCOT and decision on batching, I'm just kind of curious about your thoughts about prospects of Rockdale actually growing as a site. Thanks.

The recent information around ERCOT and power allocation in that region, we don't believe that applies to the growth at Rockdale. So the 179 up to 179 megawatts that we anticipate we could add there should not be affected by that. And I say it that way because of course we don't know what the exact regulations will be. They're just still under discussion. So we do expect that we will get most of that, if not all of that additional capacity. The land acquisition there is moving forward. It's not done until it's done, but we are, I'm not sure how to characterize where we are in that process, but we're actively pursuing it, and we expect that we will finish it. But until we do, it's hard to say exactly when that's going to happen. Great. Appreciate the insights. Thanks.

Thank you. One moment for our next questions. Our next question comes from the line of Greg Lewis of BDIG. Your line is now open.

Hey, thank you, and good morning, good afternoon for taking my questions. Hey, I guess first, I mean, based on published numbers, I guess you guys are the largest Bitcoin miner of the listed companies by Xash, so congrats on that. I did want to talk a little bit about the GPU business. You noted about potential expansion. Blah, mouthful. the potential expansion in Malaysia. You know, just kind of curious, is that infrastructure that we're building, are we leasing? And then just kind of how should we think about, you know, the rollout of that? I guess I think you mentioned 15 megawatts in Malaysia for the GPUs.

Yeah, that's infrastructure that we're leasing. I welcome Matt or Jihan to add to that. I they want. But what was the second part of your question?

How should we think about the rollout of bringing those 15 megawatts online and generating revenue from that?

I mean, we have proactively purchased some, I think the GB200, NVL72, and installed it just recently there. So that's in place right now. In terms of additional machines there, I don't think we've made any announcements at present.

So that's actually... Okay, but it sounds like we could start seeing revenue maybe in the second quarter, and then maybe that scales up sequentially for a couple quarters.

Yeah, I think John and Matt are closer to that than I am. So I don't know if... Is that a correct statement?

I think we will be able to deploy... GPUs into those infrastructures at the fourth quarter or third quarter of this year. It depends on when the infrastructure will be ready. We were focused it will be ready around June, but usually there will be one or two months delay. So I think Q3 or Q4 can be more conservative estimation.

Okay, super helpful. All right, hey, everybody, thanks for the time and have a great day. Thank you, Greg.

Thank you. One moment for our next question. Our next question comes from the line of John of Needham. Your line is now open.

Hey, Greg, thanks for taking my question and all the extra hash growth. I guess, can we just get a bit more color on Clarington? Like, do you need litigation resolved before signing an HPC customer there? Do you view that differently? Maybe any guardrails on timeline there? And then I have a follow-up on the mining piece.

So because there's litigation, we have to be sort of, you know, more careful in what we say here. You know, our attorneys feel very strongly that we have a very good case here and the litigation has little merit and we will, you know, prevail here. And on a business side, we are exploring alternatives that can mitigate the impact of the litigation. I don't really want to say a lot more than that. As we said in our scripted remarks, we do anticipate that there will be some potential delay, but we are still confident in the site overall. But it's early days, and we're looking at some significant alternatives.

Yeah, I think the alternative here, we have multiple alternative options. Creating alternative options is to solve those problems. I believe this is very critical for solving those problems. And at the company level, Clarenton, Rockdial, And our lower chain size, we believe we have lots of alternatives other than Clareton. This is the company level. And under the Clareton level, we believe we have several solutions. So I don't think that we are really caught up by this kind of litigation.

Okay, understood. Thank you for that. That latest tape out for the Dogecoin and Litecoin mining, do you anticipate mining some of these other assets alongside Bitcoin? I was looking at some of the margin profile. It looks like there's still some margin there, but maybe the opportunity in those as well?

Well, I think 99% or 98% will still be Bitcoin mining. Those other coin mining operations, cannot really be scalable very much due to the market cap. So we can only do very small size operations. But on those capacity, we deploy those mining rigs. The yield out from those capacity will be significantly improved. So I think it's worth the effort to add some outcome mining. And by the way, this is our first vehicle mining chip and the mining machines that are designed and manufactured totally depends on our Singapore and Malaysia office and the Malaysia supply chain as well. Malaysia supply chain we started to build last year or earlier. I think that this product also means that our new supply chain center in Malaysia has been quite mature. So Malaysia and Vietnam will have two supply chain centers for companies. I think it's very strategically important for the resilience of our business in the future.

Understood. That's helpful. Thank you, gentlemen. I appreciate it. Thanks, John.

Thank you. One moment for our next question. Our next question comes from the line of Brett Noblog of Cancer Fitzgerald. Your line is now open.

Hi, guys. Thank you for taking my question. Maybe now that we are, you know, several weeks into the year, I'm curious if you have any insights into what wafer allocation is going to look like this year compared to last year. And on the back of that, with Bitcoin price coming down, network cash staying resilient, hash price going to kind of near all-time lows, does that more incentivize you guys to use manufacturing capacity for internal use rather than sell external? Or how should we kind of look at the split between what you guys will manufacture for yourselves versus sell this year?

Thank you. We cannot tell the exact number or association with TSMC's allocation, but we have really good relationships. And even though we all know that the demand for AI business is huge, several times than TSMC really has, but we will get some quota from the capacity. And the hash price drops to historically do now, recently. And it became very difficult for sending the money works with profit. But we have our own capacities. Our electricity cost is one of the lowest on the market. And our compacts combined together, are the lowest on the market. So self-mining definitely became kind of a very defensive, very safe strategy for our companies to make sure that even though in such kind of an environment, our mining operations will be profitable. So self-deployment will be a very important strategy in 2016, especially in this kind of a very bearish marketplace. I think our market share for the Bitcoin mining output will continue to grow in 2026. Perfect. Thank you.

Thank you. One moment for our next question. Our next question comes from the line of Mike Rundahl of Northland. Your line is now open.

hey thank you um hey Harris I just wanted to ask on the November call there was a significant emphasis on you know GPU rental and that's what bit deer wanted to do and now it seems like you're adjusting that a little bit on some of the larger sites you know co-location can you just talk about the the pivot away and or why you're seemingly de-emphasizing GPU rental at some of those large sites?

Maybe, Jihan, do you want to do that answer first, and then I can chime in if there's still... Yes, I think on the very large site, co-location is kind of very natural, good choice for a company. And... For GPO rental, we have a smaller site, like Washington state and Tennessee state. We can absolutely handle that by ourselves. And maybe a larger hyperscalers will not be interested in sites like the 10 megawatts or 50 megawatts. They want the larger sites anyway. And the larger sites, for a company, it's better to have some coefficient deal.

Do you have another question, Mike?

No, so hey, just so I understand, you've just sort of, the larger sites you'll go co-location, the smaller ones you go GPU rental. I guess that was kind of my takeaway. Is that fair?

Yes, that's correct.

Got it. Okay, thank you.

Thank you. We'll move on to our next question. Our next question comes from the line of Stephen Glicola of KBW. The line is now open.

Hey, thanks for the question. I have two. First for Harris, I'd like to clarify whether Bitdeer's U.S. AI cloud expansion and potential expansion in Washington and Tennessee is dependent on securing multi-year reserve capacity agreements, and if so, whether those commitments would primarily be for bare metal deployments. That's one. And then second, for Jihan and Matt, you know, it would be helpful to hear your perspective

on why us ai cloud expansion is strategically attractive at this stage you know how do you think about sort of bitdeer's long-term competitive advantages in ai cloud as you broaden beyond your current asia-centric footprint thank you so the first part uh our expansion of gpu in the us is dependent on you know signing contracts at least any significant large scale expansion is um you know we can speculatively do small expansion in the US. But as we said in the statement, anything significant would be backed by contracts.

And we have our own data centers. I think that's a very important advantage right now in the US market, which means that at the end of this year, we will be able to deploy the H300 and with our own data centers. And the US right now is the center of AI innovation globally. The demand in the US market is so much stronger than any other market. And lots of US customers also just want capacity on US soil. So we have this kind of capacity in the U.S., and we're going to build it, and we can build it. We will finish it. I think this will be the most important advantage on the market right now.

Thank you.

Thank you. I'm showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.