Bitdeer lifts contracted cloud revenue backlog to $2.9 billion
Key Facts
Bitdeer's contracted AI cloud revenue backlog rose to about $2.9 billion at the end of September 2026, according to an operational update published by the company in October. The backlog stood at $0.9 billion at the end of August, as commitments for data center services expanded. The backlog represents revenue the company expects to generate from contractual commitments over their terms. Meanwhile, the annualized cloud services revenue run rate held at about $86 million in September, after rising in August from about $76 million in July. GPU utilization rose to 95% in September from 92% in August.
The contracts announced in September include commitments to purchase services from the company's facility in Johor Bahru, Malaysia, according to Investing.com. These commitments cover more than 70% of the facility's capacity allocated to cloud services. Bitdeer expects them to generate more than $1.7 billion in revenue over the contract term. The commitments span 5 years, as part of the company's expansion in AI infrastructure. At another facility within its Malaysian expansion, the company also announced commitments to purchase services for 5 years, with total expected revenue exceeding $800 million, according to its statement on fully contracting the site's capacity.
Chief Financial Officer Michael Potter said in the August update published in September that the company's strategy centers on "converting powered land into large-scale contracted revenue from AI and high-performance computing, alongside bitcoin mining." The Johor expansion benefits from existing power, cooling and network infrastructure, according to Retaina Lin, vice president of cloud services. To finance its expansion, Bitdeer generally seeks to structure contracts so that customer prepayments cover more than 50% of the associated capital expenditure. Funding sources for GPU deployment at one of its facilities include financing secured by contracted cash flows. The company added that operating cash flows are also among the funding sources for deploying those systems.
Bitdeer's total secured cloud data center capacity reached about 333.5 megawatts, according to its expansion statement published in October. The total includes company-owned facilities and others covered by executed service agreements, following the addition of a new facility to its Malaysian campus. In a separate statement on expanding its presence in Southeast Asia, the company valued active contracting opportunities for cloud capacity at more than $10 billion. Those opportunities remain under discussion with prospective customers. Bitdeer said they "are not contracted revenue backlog, revenue, an executed contract or a binding commitment."
For the company as a whole, second-quarter revenue totaled $228.8 million, compared with $155.6 million in the same quarter a year earlier, according to its earnings statement. The net loss widened to $92.3 million from $62.9 million a year earlier. In a report published in early October, H.C. Wainwright maintained its buy rating on Bitdeer shares and its $25 price target, according to Investing.com. A snapshot of after-hours trading following the October 19 session on the website showed the shares up 5.59% at $8.12. This was a point-in-time reading at the displayed time of 16:51:47 during after-hours trading.
On facility preparations, Bitdeer said in its August update that it had purchased 133 racks of computing systems in preparation for its facility covered by the Johor Bahru commitments. The company expects revenue and associated costs at the other facility covered by service purchase commitments to begin in the first quarter of 2027. This is tied to the start of service delivery from the site, according to its cloud infrastructure construction progress statement. It targets completion of system deployment and the start of operations at the Johor Bahru facility in April 2027. Further out, secured capacity represents about 95% of the company's target of up to 350 megawatts, scheduled for delivery by the first quarter of 2028.