Bitdeer Shares Surge 15% on Secured AI Capacity Expansion
Bitdeer closed at $12.97 after adding 65.1 MW of AI capacity, though Q2 revenue was outpaced by costs, resulting in a gross loss.
Key points
- Bitdeer shares rose 15.39% to $12.97 on Friday following the announcement of 65.1 MW of newly secured AI capacity at the A202 facility.
- Second-quarter revenue reached $228.8 million, but costs of $237.3 million resulted in an $8.5 million gross loss for the period.
- The company has secured 206.5 MW of AI capacity, 59% of its 2028 target, but the A201 and A202 sites lack signed customer offtake agreements.
Bitdeer Technologies Group shares advanced 15.39% to close at $12.97 on Friday, trading on volume of 18.66 million shares. The move lifted the stock 17.5% above its level from September 14, decoupling the rally from broader Bitcoin miner gains and pointing to a specific corporate catalyst.
The price action followed a September 16 operational update in which Bitdeer reported securing an additional 65.1 megawatts of AI-cloud capacity. This addition brings the company's total secured capacity to 206.5 MW, representing 59% of its stated first-quarter 2028 target, although the company has not yet signed customer offtake agreements for the new sites.
Capacity Expansion Without Signed Demand
The newly secured 65.1 MW at the A202 Johor facility is under a ten-year data-center services agreement, with energization expected in the third quarter of 2027. The site shares power and cooling infrastructure with the A201 facility, which currently holds 133 GB300 racks but lacks a contracted customer. CFO Michael Potter noted that A201 remains in advanced negotiations, with Bitdeer seeking prepayments to cover more than half of the related capital spending.
Management describes the $7 billion AI pipeline as an estimate rather than confirmed backlog. While the A102 site is fully contracted for over $800 million in expected five-year revenue, the A201 and A202 sites do not yet have signed offtake deals. The company still requires 143.5 MW to reach its 350 MW target, highlighting that current figures measure secured sites rather than signed customer demand.
Negative Gross Profit Despite Revenue Growth
Bitdeer’s second-quarter revenue rose 47.0% to $228.8 million, yet cost of revenue reached $237.3 million, resulting in an $8.5 million gross loss. This margin compression indicates that current operating scale, still largely supported by the mining business, is not yet generating sufficient profit relative to costs. August Bitcoin production increased to 1,310 coins from 1,190 in July, with self-mining hash rate climbing to 79.9 exahashes per second.
The company holds $496.3 million in cash and restricted cash, against a Friday market value of $3.53 billion. This valuation equates to approximately 7.1 times the cash balance. The financial structure relies on secured financing and operating cash flow to balance the capital spending required for the AI infrastructure build-out, a tension reflected in the negative gross profit figure.
Market Valuation and Analyst Divergence
TechStock² notes that while the stock’s jump prices in the potential of the pipeline, the underlying financials show a funding tension. Analyst recommendations remain mixed in their specific targets, ranging from $10 to $25, with several firms issuing Buy or Overweight ratings. However, the lowest current price target sits below Friday’s closing price, indicating that not all market participants view the current valuation as fully supported by existing contractual demand.
The divergence between the secured capacity figures and the absence of signed offtake agreements for the newest sites remains the key risk factor. The market’s reaction to the 65.1 MW addition suggests investors are weighting the future revenue potential of the A201 and A202 facilities, despite the current lack of customer commitments and the recent gross loss.
