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1. Record revenue of $320.7 million, but a $125.5 million loss
Bitdeer Technologies Group (Nasdaq: BTDR) reported on November 10 that its third-quarter earnings set a revenue record: $320.7 million for the third quarter of 2026, up 89% from $169.7 million a year earlier. The bitcoin miner and AI cloud operator also posted a wider net loss of $125.5 million, compared with $30.1 million in the same quarter of 2025, with a $54.6 million non-cash charge among the causes.
The results, which are unaudited, describe a company growing quickly on two fronts at once. Its bitcoin mining output surged, and its adjusted earnings grew faster than sales. At the same time, financing-related charges pulled the bottom line deep into negative territory, a contrast that runs through the whole report.
Revenue also climbed about 40% from the $228.8 million Bitdeer booked in the second quarter of 2026, showing that the improvement was not only a comparison against a weak year-earlier period but also a sequential step up from the preceding three months.
2. What is driving Bitdeer's revenue?
The largest contributor was self-mining, the activity of operating the company's own machines to earn newly issued bitcoin (BTC) and transaction fees. Self-mining produced $217.5 million, roughly two-thirds of total revenue for the quarter. That ratio makes bitcoin production the central engine of the business even as the company builds out other lines.
Bitdeer self-mined 3,855 BTC during the quarter, an increase of 248% from the same period last year. A rise of that magnitude reflects a substantially larger fleet and hashing capacity compared with twelve months earlier, since the number of coins a miner earns depends on the share of total network computing power it controls.
The rest of revenue came from activities other than self-mining. The company operates sites across the United States, Bhutan, Norway, Canada, Malaysia and Ethiopia, and its total power portfolio stands at 3.1 gigawatts. Cheap and reliable electricity is the central input for mining, so a wide footprint of power capacity underpins both mining growth and the conversion of sites to other uses.
3. Why did Bitdeer post a net loss despite higher revenue?
Net loss widened to $125.5 million from $30.1 million a year earlier, even as revenue nearly doubled. Part of the gap is a non-cash loss of $54.6 million tied to the company's digital asset loan. Because the charge reflects accounting for borrowed digital assets rather than cash leaving the business, it distorts the picture of day-to-day operations.
Gross profit offers another view. Bitdeer reported gross profit of $10.8 million, compared with $39.7 million in the third quarter of 2025, so margins at the gross level were lower than a year ago. The comparison with the previous quarter is more favorable: in the second quarter of 2026 the company recorded a gross loss of $8.5 million, which means it returned to positive gross profit in the third.
The mix of record sales, thinner gross profit than last year and a large non-cash charge explains the headline. Investors reading the income statement have to separate operating performance from the effect of financing arrangements, which can swing results sharply in either direction depending on how the underlying assets are valued.
4. Adjusted EBITDA rises 173% year over year
Adjusted EBITDA reached $69.6 million, up 173% from the third quarter of 2025 and up 124% from the second quarter of 2026. EBITDA stands for earnings before interest, taxes, depreciation and amortization, and the adjusted version strips out additional items such as certain non-cash charges. It is widely used among miners to gauge operating performance independent of capital structure.
The growth in adjusted EBITDA outpaced the 89% growth in revenue, which indicates that the company converted a larger share of each dollar of sales into operating earnings. That improvement points to better efficiency in its mining operations, even though the full-income-statement measures remain pressured by financing effects.
The gap between a positive adjusted figure and a deeply negative net result is the key analytical question for the company. Readers will want to know how much of that gap is one-time or accounting related and how much represents lasting costs such as interest and depreciation on a rapidly expanding asset base.
5. The $4.7 billion Tydal lease and a $2.9 billion AI backlog
The company pointed to its AI and high-performance computing business as a second growth leg. On August 4, 2026, Bitdeer announced a 16-year lease with Volta Tydal AS covering 121 IT megawatts, valued at $4.7 billion. The company said construction at Tydal remains on schedule.
Bitdeer's AI cloud revenue backlog is about $2.9 billion, supported by 332 megawatts of secured capacity. A backlog represents contracted revenue that has not yet been recognized, so it signals future income but does not itself add to current results. Converting backlog into revenue depends on completing buildouts, delivering capacity on time and keeping customers on their contracts.
The strategy reflects a wider shift among bitcoin miners toward AI computing. Miners already hold power contracts, grid connections and data center sites, assets that are in demand from companies training and running AI models. Long leases with predictable payments offer a steadier income stream than mining, whose revenue rises and falls with the bitcoin price and network difficulty.
6. Why Bitdeer ended the quarter with only 47 BTC
At the end of the quarter, Bitdeer held just 47 BTC, a small figure compared with the 3,855 coins it mined over the same three months. The contrast shows that the company does not keep most of its production on the balance sheet. The gap suggests that most coins mined during the period were not accumulated on the balance sheet.
That approach differs from miners that hold large reserves and effectively pair their operations with a bet on bitcoin's price. Bitdeer's limited holdings mean its results depend more on production volume and operating margins than on appreciation of a stockpile, and they reduce its exposure if bitcoin rallies.
Liquidity data point the same way. The company reported cash and restricted cash of $213.7 million as of September 30, 2026. That balance provides a cushion for capital spending on new capacity and for servicing obligations while the AI projects are built.
7. How bitcoin mining economics work
Mining is the process by which computers compete to validate bitcoin transactions and add new blocks to the blockchain, with the winner receiving newly issued coins and fees. A miner's revenue therefore depends on three variables: the share of network computing power it controls, the price of bitcoin and the fees paid by users. Costs are dominated by electricity and by the machines themselves, which lose value as newer models arrive.
Because the reward is shared among all participants, a miner that adds machines faster than the network grows will see its output rise, which is consistent with the 248% jump in coins mined. Output growth does not guarantee profit, however, since depreciation on new equipment, interest on borrowing and power costs all scale with expansion. That is why analysts track gross profit and adjusted EBITDA alongside raw production.
The sector also faces a structural pressure. Competition for network share keeps increasing, so each unit of computing power earns less over time unless the miner improves efficiency or lowers its power cost. Companies with access to large blocks of inexpensive electricity are better placed, and that same advantage is attractive to operators of AI data centers.
8. Why miners are turning to AI infrastructure
AI workloads demand enormous amounts of power and specialized buildings, and the shortage of ready sites has made existing mining facilities valuable. A miner that already controls grid connections, cooling systems and land can offer those assets to customers who need capacity quickly. In exchange, it can sign multi-year leases that pay on a schedule independent of bitcoin's price.
The tradeoff is capital intensity. Converting or building facilities for high-performance computing requires heavy upfront spending, and the returns arrive over many years. A 16-year lease like the one with Volta Tydal AS spreads those returns over a long horizon, which is why the company highlights the backlog as a measure of its future revenue visibility.
For shareholders, the question is whether the two businesses reinforce or strain each other. Mining supplies cash flow and operating expertise today, while the AI business promises steadier revenue later. Bitdeer's report suggests it intends to pursue both, with the balance shifting as the contracted pipeline is built out.
9. What to watch next
Three items stand out in the report. The first is whether adjusted EBITDA keeps growing faster than revenue, which would show continuing operating leverage. The second is whether charges related to digital asset borrowings shrink, since they were a main reason net results turned sharply negative. The third is how quickly the $2.9 billion AI backlog turns into recognized revenue.
Readers comparing results across quarters should also keep the base effects in mind. The third quarter of 2025 was itself a period of rapid growth for the company, so an 89% rise builds on an already elevated starting point. Gross profit, adjusted EBITDA and the size of the non-cash charge will all be worth tracking against the next reporting period to judge whether the improvement is durable.
The Tydal construction timeline is the near-term operational marker. Delivery on schedule would support the company's claim that its dual strategy can stabilize revenue, while delays would raise questions about a model that relies on large, capital-intensive projects. Each later quarterly report will show how much of the build-out has translated into results.