Bitdeer put AI ahead of bitcoin mining in its June operating update, a choice that said as much as the numbers themselves. In management commentary, CFO Michael Potter first highlighted AI Cloud annual recurring revenue of $76 million, then moved to June mining output of 990 BTC, a figure that was up 388% from 203 BTC a year earlier.
That sequencing lines up with what investors appear to care about now. Bitdeer is still producing more bitcoin, but the market is watching whether the company can shift its valuation story toward AI infrastructure.
June mining output rose, while the stock swung sharply
In June, Bitdeer’s self-mining hashrate reached 73.0 EH/s. The company ran 243,000 mining machines and produced 990 BTC for the month.
On the AI side, annualized recurring revenue for AI Cloud increased by $7 million in a month to $76 million. Of 4,248 GPUs, 3,517 had already been subscribed by customers.
Bitdeer also outlined several infrastructure moves. In Malaysia, it signed a 10-year lease and plans to deploy 128 NVIDIA GB300 NVL72 clusters. In Norway, the 225 MW Tydal site is being converted from a mining facility into an AI data center. The 563 MW Rockdale site in Texas remains under evaluation for an AI shift. In Ohio, the 570 MW Clarington project and the 300 MW Niles project are being developed as new AI and hosting facilities. Those four sites total about 1.7 GW, while Bitdeer’s global power capacity exceeds 3 GW.
The market reaction was volatile. BTDR closed at $11.37 the day before the update, down 6.27% over the previous week. On the day of the announcement, the stock rebounded about 9.76% to close at $12.48.
Even so, the short-term move did not settle the bigger question. Mining output is climbing, but investors are still weighing whether the business can produce profits.
Self-mining was still loss-making in the first quarter
Bitdeer’s first-quarter figures showed the pressure clearly. The company posted $147 million in self-mining revenue, but costs tied to that business reached $181 million.
That left gross profit from self-mining at negative $34.4 million, with gross margin at about -23.4%. Company-wide gross margin was -20.7%.
According to the source article, high power expenses, depreciation, and mining machine supply-chain costs continued to drain profitability from the mining segment.
The month-by-month production trend also showed a slowdown in growth. Bitdeer mined 661 BTC in March, 783 BTC in April, 921 BTC in May, and 990 BTC in June. By June, the month-on-month increase had slowed to 7.5%.
AI Cloud remains small in realized revenue terms
The $76 million AI Cloud annual recurring revenue figure drew attention, but the source article noted that it is a run-rate metric. The company’s calculation takes GPU order revenue from the final day of the period and multiplies it by 365, rather than reflecting revenue already collected over a full year.
Actual AI Cloud revenue recognized in the first quarter was only $3.7 million, accounting for less than 2% of total revenue.
That leaves Bitdeer’s more than 3 GW power network as the core asset in its transition story. The company is converting parts of its mining-oriented facilities into AI compute centers. The article said that sites in Tydal, Norway, Wenatchee, Washington, and Knoxville, Tennessee, are already removing mining rigs and revising designs. Rockdale in Texas and Molde in Norway are still in the evaluation stage.
Ohio litigation and $1.3 billion of debt narrow the timeline
The largest project risk now appears to be in Ohio. The Clarington project is planned at 570 MW and accounts for 46% of Bitdeer’s under-construction pipeline capacity.
According to the source article, a steel company, American Heavy Plate Solutions, has sued over the project, arguing that it interferes with shared power and road access and asking the court to permanently block construction.
Bitdeer also has $1.3 billion of debt on its balance sheet. Three tranches of convertible notes mature in 2029, 2031, and 2032.
The source article cited industry commentary saying that if the litigation delays delivery of the data center project, that delay could collide with the company’s debt maturity schedule, leaving a narrow window for the conversion of its 3 GW power base.
Analyst targets diverge as the company tries to move past the mining label
Wall Street is not unified in its view. Needham has a $19 price target on the stock, while Keefe Bruyette cut its target to $14 from $26.5.
Bitdeer’s June update captured a broader shift in how listed miners are being judged. The company is still mining bitcoin, and mining more of it. But the market is paying closer attention to whether those power assets can be repositioned for AI data centers and hosting.
That tension runs through the whole report: a mining company with rising output, a loss-making mining segment, a small but fast-promoted AI business, and a transition plan that depends on execution across power, construction, and financing.