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Bitdeer signs $400M AI cloud computing deal for Malaysia facility

Created at 20 Aug · 1:26 PM1 source↑ Market-relevant
IN SHORT

Bitcoin mining company Bitdeer's AI division has secured a five-year customer deal worth approximately $400 million for its upcoming Malaysia facility. Revenue is expected to begin in early 2027, with the company targeting 350 megawatts of AI cloud capacity by 2028.

Key Numbers

$400 milliontotal revenue from AI cloud computing deal
five-yearterm of the customer agreement
350 megawattstarget AI cloud data center capacity
2028year for target AI capacity
2027year for revenue commencement
7%stock price rise on Wednesday
6%pre-market trading rise on Thursday
121 megawattsAI computing capacity leased in Norway
$4.7 billionvalue of Norway lease
16-yearlease term in Norway

Who's Involved

Bitdeer AI
Bitcoin mining company's AI division that signed the deal
Bitdeer
Company whose stock price rose following the announcement
MARA Holdings
Bitcoin miner that has expanded into AI infrastructure
TeraWulf
Bitcoin miner that has expanded into AI infrastructure
Hut 8
Bitcoin miner that has expanded into AI infrastructure
IREN
Bitcoin miner that has expanded into AI infrastructure

↳ Why This Matters

The deal signifies Bitdeer's strategic expansion into the lucrative AI infrastructure market, diversifying its revenue beyond Bitcoin mining and potentially positioning it as a key player in the growing demand for AI computing power.

Key facts

  • Bitdeer AI has entered into a five-year customer agreement for its A102 Malaysia facility.
  • The deal is valued at approximately $400 million in total revenue.
  • Revenue generation is expected to start in the first quarter of 2027.
  • The company is targeting 350 megawatts of AI cloud data center capacity by the first quarter of 2028.
  • Bitdeer's stock saw a 7% increase on Wednesday and a nearly 6% rise in pre-market trading on Thursday.

Bitcoin mining company Bitdeer's artificial intelligence division, Bitdeer AI, has secured a significant five-year customer deal for its upcoming A102 facility in Malaysia. The agreement, covering approximately 50% of the facility's capacity before its energization, is expected to generate about $400 million in total revenue.

Revenue and associated costs are slated to begin in the first quarter of 2027, coinciding with the commencement of services. Bitdeer AI is actively working towards establishing 350 megawatts of AI cloud data center capacity by the first quarter of 2028.

This move aligns Bitdeer with other Bitcoin miners, such as MARA Holdings, TeraWulf, Hut 8, and IREN, that are diversifying their revenue streams by venturing into AI infrastructure and high-performance computing. Earlier in August, Bitdeer also signed a 16-year lease valued at $4.7 billion for 121 megawatts of AI computing capacity in Norway.

Following the announcement, Bitdeer's stock price experienced a notable increase, rising 7% on Wednesday and an additional nearly 6% in pre-market trading on Thursday.

Frequently asked questions

The five-year customer deal is expected to bring approximately $400 million in total revenue to Bitdeer.

Revenue and associated costs are expected to commence in the first quarter of 2027.

Bitdeer AI is targeting 350 megawatts of AI cloud data center capacity by the first quarter of 2028.

Other Bitcoin miners expanding into AI infrastructure include MARA Holdings, TeraWulf, Hut 8, and IREN.

What Happens Next

01Revenue and costs associated with the deal are expected to begin in Q1 2027.
02Bitdeer AI aims to achieve 350 megawatts of AI cloud capacity by Q1 2028.

How It Developed

Bitdeer AI signed a five-year customer deal for its Malaysia facility.
The deal is expected to generate approximately $400 million in revenue.
Revenue and associated costs are anticipated to commence in Q1 2027.
Bitdeer AI aims for 350 megawatts of AI cloud data center capacity by Q1 2028.
Bitdeer's stock price rose 7% on Wednesday and nearly 6% in pre-market trading Thursday.

Sources

T1
Bitdeer signs $400M AI cloud computing deal for Malaysia facilityBitdeer expects revenue from the five-year agreement to begin in early 2027 as it builds toward 350 megawatts of AI cloud capacity by 2028.Cointelegraph

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