Shares of Bitdeer Technologies Group (BTDR) fell 19.23% to close at $8.79 on August 10, 2026, after the company reported second-quarter financial results that revealed a widening net loss despite strong revenue growth. The cryptocurrency mining firm, spun off from mining hardware giant Bitmain and led by co-founder Jihan Wu, posted a 47% year-over-year increase in revenue, but surging operational costs erased any bottom-line gains.

Revenue Growth Offset by Rising Costs

Bitdeer reported Q2 revenue of $228.8 million, up significantly from $155.6 million in the comparable 2025 period. Self-mining operations accounted for the majority of income at $168.4 million, driven by expanded computational capacity. Co-mining services contributed $25.0 million, and the AI Cloud segment generated $14.0 million.

However, cost of revenue climbed sharply to $237.3 million from $143.6 million a year earlier, producing a gross loss of $8.5 million — a sharp reversal from the $12.0 million gross profit recorded in Q2 2025. Gross margin turned negative at 3.7%, compared with a positive 7.7% margin in the year-ago quarter.

The company's net loss widened to $92.3 million, a deterioration from the $62.9 million deficit posted in the prior-year period. Adjusted EBITDA did improve, rising to $31.1 million from just $4.6 million year-over-year, reflecting the benefits of greater mining scale. Still, escalating expenses tied to energy consumption, asset depreciation, general operations, and debt servicing weighed heavily on profitability. The results underscore a broader pressure facing Bitcoin miners following the April 2024 halving, which cut block rewards from 6.25 to 3.125 BTC, compressing margins across the industry and pushing operators to scale rapidly or diversify revenue streams to remain viable.

Bitcoin Production and Hash Rate Surge

Bitdeer's total managed hash rate reached 86.1 exahashes per second (EH/s), nearly tripling from 30.6 EH/s in the year-ago quarter. Self-mining operations accounted for 73.0 EH/s, while co-mining services made up the remaining 15.9 EH/s.

During the quarter, Bitdeer mined 2,694 Bitcoin, a dramatic increase from the 565 Bitcoin produced in Q2 2025. The mining hardware fleet under management expanded to 289,000 units, up from 200,000 machines in the prior-year period.

Operational efficiency improved notably, with average miner performance reaching 15.8 joules per terahash, compared to 25.7 joules per terahash previously. Average electricity costs rose modestly to $44 per megawatt-hour from $43 in the comparison quarter.

The fleet expansion drove substantial increases in power consumption and equipment depreciation across mining facilities. Research and development spending rose to $36.1 million from $20.6 million year-over-year. General and administrative costs also increased to $34.3 million, reflecting higher headcount and expanded consulting engagements.

AI and HPC Infrastructure Build-Out Continues

Bitdeer continued aggressive expansion of its artificial intelligence and high-performance computing infrastructure across multiple global locations. Total worldwide electrical infrastructure capacity now stands at 2,980.2 megawatts, with 1,752 megawatts currently operational. Development projects are underway in Norway, Ohio, Texas, Canada, Malaysia, and Bhutan. The push into AI computing follows a wider industry trend, as publicly traded Bitcoin miners including Core Scientific, Hut 8, and Iris Energy have pursued AI and HPC hosting contracts to monetize their power infrastructure and offset tighter mining economics.

The company's Tydal facility in Norway is central to its AI infrastructure strategy. The first phase is scheduled to begin operations in Q4 2026, with a second phase targeted for early 2027. The added capacity at Tydal will primarily support AI and high-performance computing workloads.

As of June 30, Bitdeer held $496.3 million in cash, cash equivalents, and restricted cash. Digital currency holdings and associated receivables totaled $196.9 million, while aggregate borrowings reached $1.8 billion.

The company transitioned to U.S. GAAP accounting standards effective January 2026 and restated historical financial periods to ensure comparability.