Bitdeer Technologies Group

Hello, and welcome to BitDear Technologies' first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press Start11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Start11 again. I would now like to hand the conference over to Tesh Daya. You may begin.

Thank you, operator, and good morning, everyone. Welcome to Bitgear Technology Group's first quarter 2026 earnings conference call. Joining me today are Jihan Wu, founder, chairman, and chief executive officer, Matt Kong, chief business officer, and Harris Bassett, chief strategy officer. Today's call will begin with Harris writing a review of the company's first quarter results, operational progress, and strategic direction. And I will close with an update on our financial performance. To accompany today's call, we have provided a supplemental investor presentation available on Bitdeer's investor relations website under webcasts and presentations. Before management begins their formal remarks, I 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 of forward-looking statements and the risks and uncertainties related to Bitnear's business, please refer to the company's filings with the U.S. Securities and Exchange Commission. I also want to note that beginning with the first quarter of 2026, Bitdeer has transitioned from international financial reporting standards to U.S. generally accepted accounting principles. As part of this transition, Bitdeer has adopted FASB ASU 2023-08, which requires digital assets held to be measured at fair value each reporting period. Changes in the fair value of our digital assets will flow through GAAP net income and may introduce non-cash volatility into reported earnings. We will discuss this further during the financial review. With that, I will now turn the call over to Harris.

Thank you, Tesh, and good day, everyone. The first quarter of 2026 demonstrated BitDeer's fundamental strength and resilience. In a challenging environment for the broader mining industry, our vertically integrated platform advanced across our four strategic businesses, Bitcoin Mining, ASIC Development, AI Cloud, and co-location data center infrastructure. We are making significant progress in each area. First, our Bitcoin mining production has grown almost 500% year on year. Second, we launched the industry-leading SEAL miner A4 series. Third, we are rapidly growing our AI cloud revenue. And fourth, we are well on our way towards converting our TETL Norway facility into what is expected to be Norway's largest AI data center with the least tenants in advanced stages of negotiation. The combined strengths we see across our portfolio create optionality that is genuinely differentiated within our industry. We remain committed to Bitcoin mining and see significant opportunity ahead. At the same time, our three gigawatt global power capacity is a strategic asset that is increasingly relevant to AI and co-location customers. In Q1, we delivered total revenue of $188.9 million, an increase of approximately 170% year over year, with an adjusted EBITDA of $14.4 million, an approximate $60 million increase year on year. Tesch will cover additional details of the financials here shortly. But first, let's turn to a review of our power and infrastructure portfolio, which remains the foundational asset underlying everything we are building. We continue to make meaningful progress across our global infrastructure footprint during the quarter. At the end of March, we had approximately 1.7 gigawatts of electrical capacity online and a total global power pipeline of approximately three gigawatts. We believe this represents one of the largest and most suitable power portfolios among publicly listed companies in our sector, and it continues to provide us with strategic optionality as demand for large scale compute infrastructure intensifies. Our core sites are sizable, dispersed across multiple continents and regulatory jurisdictions, They include access to renewable energy with attractive economics, featuring infrastructure designed to support intensive, continuous operations. These are characteristics that are difficult and time-consuming to replicate, and they are increasingly what large-scale AI customers are looking for as they pursue power-constrained deployments. Over the past several months, we have seen the demand dynamics for AI data center capacity continue to sharpen. The supply and demand imbalance for AI compute has widened, and we expect this shortage to persist well into 2027 and beyond. Time to power remains a critical variable, and we are positioned to serve customers seeking both near-term and mid-term capacity in a way that very few operators can match. Against this backdrop, we are prioritizing co-location arrangements for our larger sites. which are best suited to serve hyperscale, neocloud, and enterprise tenants seeking substantial committed capacity. For our smaller facilities, we continue to pursue AI cloud opportunities, deploying capacity on a contract-backed basis. This tiered approach reflects a disciplined allocation of capital across our portfolio, matching the appropriate commercial model to the scale and characteristics of each site. Let me walk through where we stand on key development sites. TETL Norway remains our highest priority co-location opportunity. On March 30, 2026, our subsidiary, TETL Data Center AS, entered into a formal agreement with Data Center Installations AS, a specialized Norwegian contractor, to develop and convert the TETL facility into an AI data center. The project will deliver 180 megawatts of gross installed capacity, and the first phase is expected to be completed as early as December 2026. Upon completion, the TIDAL facility is expected to be Norway's largest operational AI data center and one of the largest in Europe by installed capacity. This facility is being built primarily for co-location usage. Designed in accordance with NVIDIA guidelines, and closely following NVIDIA reference designs, it is intended to support deployment of both GB300 and NVIDIA's latest Vera Rubin AI technology. What makes TITL particularly compelling to prospective tenants is the combination of attributes that are genuinely rare. Stable baseload power enabled by 100% renewable sources and an excellent power usage effectiveness or PUE of approximately 1.1 enabled by the cold climate and chilled water available from a nearby lake. Furthermore, the site was built such that it substantially reduces retrofit capital requirements relative to a greenfield build. We expect our remaining CAPEX costs to complete the TETL site to be significantly lower than typical greenfield data center development costs. Orders for most long-lead equipment have been placed, and decommissioning of Bitcoin mining rigs at the site is already underway. Upcoming near-term milestones include finalization of key equipment installation contracts and technical installation work in several of our data homes. Lastly, we have also begun technical due diligence work on behalf of our future tenants. We are in advanced stages of negotiations with a potential co-location tenant for TETL. These discussions, when completed, would result in highly regarded and well-recognized end users. Morgan Stanley has been retained as our financial advisor for this project. Signing the TETL lease agreement is management's highest priority. At Clarington, Ohio, we have 570 megawatts of power under contract with AEP. This is one of the largest AI data center development opportunities in the United States among publicly listed companies in our sector. Design and preparation work is continuing for the site. As we have disclosed, litigation filed by a neighboring company could affect the timing of construction. Our attorneys feel strongly that we have a well-founded case and that the litigation has limited merit. On the business side, we are evaluating plans that can mitigate the impact on our overall development timeline. We remain optimistic about the potential for the site and we continue to build strong relationships with the local community and government officials at all our Ohio sites. At Rockdale, Texas, we are pursuing a dual-track strategy that maintains our existing Bitcoin mining operation while developing new AI infrastructure on adjacent land. In addition, we are working with ERCOT on incremental power capacity of 179 megawatts targeted for energization by year end. This will bring our total power capacity at Rockdale to over 740 megawatts. We are actively engaged in discussion with several prospective co-location tenants for this site. The Rockdale site benefits from its location in the ERCOT market and will be designed from the ground up to support AI workloads. This approach allows us to maintain revenue generating mining operations throughout the development period rather than interrupting them. Beyond these three primary sites, conversion projects are advancing at Wenatchee, Washington and at Knoxville, Tennessee. Both sites are undergoing design and permitting work for AI data center conversion with the Wenatchee site and first phase of our Knoxville site targeted for completion in the fourth quarter. At Niles, Ohio, we are actively working toward the development of our 300 megawatt grid interconnected site with a target energization timeline of the fourth quarter of 2028. We also plan to break ground on our 101 megawatt Fox Creek, Alberta, Canada site in June of this year. Furthermore, we continue to aggressively look for additional opportunities to invest in land and power capacity, and we will share these updates as appropriate. The U.S. continues to be the primary hub for Bitgear's global operations, bolstered by our confidence in pro-business, pro-innovation policies that support the growth of AI and digital assets. We remain firmly committed to scaling our presence in the U.S. On the Bitcoin mining side, the expansion of our self-mining platform continued throughout the quarter. Self-mining hash rate grew from 55.2 exahash per second at the end of December 2025 to approximately 65 exahash per second exiting March. 65 exahash per second represents a year-over-year increase of more than 400%. We mined 668 Bitcoin in January, 705 Bitcoin in February, and 661 Bitcoin in March. The modest decline in March relative to February reflects seasonal factors at our Norway and Bhutan facilities rather than any underlying deterioration in fleet performance, as witnessed by our April production of 783 Bitcoin. We expect to see continued momentum in the months ahead. Our mining operations are not plateauing. The Seal Miner A4 series, officially launched on April 7th, 2026, represents the most efficient mining rigs anyone has delivered. The flagship A4 Ultra Hydro model operates at 9.45 joules per terahash. The A4 series also includes the A4 Pro Hydro and the A4 Pro Air at 10.9 joules per terahash. These machines provide deployment flexibility across different site configurations and cooling environments. The A4 Pro Air is one of the most efficient air-cooled mining rigs in the world. Steel 04-2 chip development continues at our U.S.-based design center. Importantly, our internal manufacturing capability means we are not subject to third-party hardware markups on these rigs when deploying them into our own fleet. This is a structural cost advantage over other mining operations. The inclusion of these new machines will continue to improve our fleet efficiency of approximately 16.4 joules per terahash as of March 31, 2026. That efficiency improvement, combined with our advanced chip design and supply chain resources, translates directly into lower cost per unit of hash rate produced, which means better mining margins at any given hash price level. Over the next several quarters, we plan to leverage our growing fleet of steel miners beyond our existing mining data center capacity and work with third parties to deploy incremental co-mining capacity at their facilities. This will allow us to maximize mining economics in the near term while maintaining flexibility to opportunistically drive seal miner sales into the second half of the year, depending on market conditions. On the seal miner manufacturing front, preparations for our Reno, Nevada factory are progressing. A facility lease has been signed and construction permit applications have been submitted to local municipal authorities. and we anticipate starting construction by Q3. U.S.-based manufacturing is a core component of our vertically integrated strategy and aligns with both our operational resilience objectives and the evolving trade and supply chain environment. Our AI cloud business has matured from a pilot service into a commercially distinct, structurally attractive business segment with rapidly growing revenue and a deepening enterprise customer base. For the AI cloud business, annual recurring revenue, which was approximately 10 million at the end of January, grew to approximately 21 million by the end of February and reached approximately 43 million at the end of March. GPU utilization climbed from 41% in January to 94% in March. At quarter end, we had 2,128 GPUs deployed, including H100s, H200s, B200s, and GB200s, with 1,948 under active external subscription. More recently, in our April production update, we announced annual recurring revenue has now reached approximately 69 million with over 4,000 GPUs deployed. Customers are committing to longer durations, which improves revenue visibility and cash flow stability. Since late 2025, we have seen hourly pricing of H100s increase by approximately 40%. This is in direct response to demand levels, and the market is absorbing this increase without meaningful friction. This pricing power reflects the strong fundamentals of our AI cloud business. In January, we deployed our initial NVIDIA GB200 NVL72 infrastructure at our CyberJaya Malaysia facility. This marks the first phase of an accelerated expansion designed to support enterprise grade training workloads on the Grace Blackwell architecture. In February, we launched a managed Kubernetes service with GPU native orchestration, providing enterprise customers with scalable infrastructure for AI training and inference. Our model studio platform now supports more than 50 leading open source models enabling clients to deploy everything from basic inference to advanced multimodal applications through a single managed environment. In March, we showcased our integrated AI solutions at the NVIDIA GTC conference, generating incremental business opportunities and strengthening our brand presence within the AI infrastructure ecosystem. We are actively evaluating US data center leasing opportunities, and expect to bring GPU capacity and AI cloud services online for U.S. customers in 2026. Consistent with our stated approach, any large-scale U.S. GPU expansion will be backed by committed customer contracts. Turning to our balance sheet, in February, Bitdare successfully priced an upsized offering of $375 million in 5% convertible senior notes due in 2032. We ended Q1 with cash, cash equivalents, and restricted cash of $298 million. We expect that the bulk of our fiscal year 26 total financing needs will be addressed through project level debt financing following a signed lease agreement for our TETL Norway site. Now I will hand it back to Tash to go over the detailed financials.