Bitdeer Technologies Group (BTDR) shares fell 19.23% to $8.79 after the company reported a wider second-quarter net loss. While revenue climbed 47% year over year, escalating mining costs pushed the company into a gross loss for the period. The results underscore a broader challenge facing bitcoin miners following the April 2024 halving, which reduced per-block rewards from 6.25 BTC to 3.125 BTC and intensified pressure on operators to scale efficiently. Bitdeer also expanded its mining output and AI infrastructure footprint during the quarter, though it carried a larger debt load heading into the second half of the year.

Revenue Growth Offset by Rising Costs

Bitdeer reported second-quarter revenue of $228.8 million, up from $155.6 million one year earlier. A sharp increase in deployed hash rate underpinned $168.4 million in self-mining revenue. Co-mining contributed $25.0 million, and AI Cloud revenue reached $14.0 million.

Cost of revenue, however, surged to $237.3 million from $143.6 million in the prior-year period. As a result, Bitdeer recorded an $8.5 million gross loss, a swing from the $12.0 million gross profit posted a year earlier. Gross margin declined to negative 3.7%, compared with positive 7.7% in the same quarter of the previous year.

The company's net loss widened to $92.3 million from $62.9 million. Adjusted EBITDA improved to $31.1 million, up from $4.6 million, reflecting the benefit of expanded mining capacity. Nevertheless, higher energy, depreciation, operating, and interest expenses placed significant pressure on overall profitability.

Mining Expansion Drives Both Output and Expenses

Bitdeer increased its total managed hash rate to 86.1 EH/s, up from 30.6 EH/s year over year. Self-mining capacity reached 73.0 EH/s, while co-mining capacity stood at 15.9 EH/s. The company mined 2,694 Bitcoin during the quarter, a substantial increase from 565 Bitcoin in the prior-year period. The near-fivefold increase in Bitcoin output reflects how aggressively Bitdeer scaled its fleet to compensate for the halved block reward, which has weighed on per-unit economics across the mining sector.

Total mining rigs under management rose to 289,000 from 200,000. Average miner efficiency improved to 15.8 joules per terahash, down from 25.7 joules per terahash. Average electricity expense edged up slightly to $44 per megawatt-hour from $43.

The expanded fleet contributed to higher electricity and depreciation expenses across Bitdeer's mining operations. Research and development spending increased to $36.1 million from $20.6 million, while general and administrative expenses climbed to $34.3 million due to rising headcount and consulting costs.

AI Infrastructure Buildout Continues Amid Growing Debt

Bitdeer continued developing its AI and high-performance computing infrastructure across multiple international locations. Global electrical capacity reached 2,980.2 megawatts, including 1,752 megawatts already online. The company advanced projects in Norway, Ohio, Texas, Canada, Malaysia, and Bhutan. The push into AI computing mirrors a wider trend among publicly traded bitcoin miners, including Core Scientific and Hut 8, that are repurposing power infrastructure to capture demand from AI and cloud workloads.

The Tydal site in Norway remains central to Bitdeer's AI infrastructure strategy. Phase one is targeted for service commencement in the fourth quarter of 2026, with phase two following in early 2027. Additional capacity at Tydal will support the company's planned AI and high-performance computing operations.

As of the end of June, Bitdeer held $496.3 million in cash, cash equivalents, and restricted cash. Digital assets and related receivables totaled $196.9 million, while total borrowings reached $1.8 billion. The company also adopted U.S. GAAP reporting from January 2026 and recast earlier periods for comparability.