BITDEER THIRD QUARTER 2026 EARNINGS CALL - BITDEER TECHNOLOGIES GROUP

Explicit Guidance:

• 2026 Crypto Mining CapEx: Expected to be at or below $200 million (low end of previous $200–$280 million range), excluding CO-miner hardware, GPUs, and AI/HPC infrastructure spend.
• 2027 Financial Guidance: Management will provide specific 2027 CapEx and AI Cloud revenue guidance in the Q4 2026 earnings release.
• TETL (Volta Lease) Spend: Remaining capital expenditure for the 121 IT MW facility is approximately $500 million total (including Phase 1 and Phase 2), with $250 million remaining spend spread across Phase 1 and Phase 2 delivery.
• 2027 Energy & Delivery Timelines:
  • A102 (Malaysia, 9.5 MW): Revenue expected to begin Q1 2027.
  • A201 (Malaysia, 21.7 MW): Revenue expected to begin Q2 2027.
  • A202 (Johor, 65.1 MW): Energization expected Q3 2027.
  • A901 (Johor, 67 MW): Ready for service Q2 2027.
  • A103 (CyberJaya, 60 MW): Energization expected Q1 2028.
• Fox Creek (Ontario): Power plant expected to enter production mid-to-end of 2027 (100 MW site).

Business-Segment Outlook:

• AI Cloud Backlog & Revenue: Current backlog stands at approximately $2.9 billion; combined value of signed contracts and opportunities under negotiation exceeds $10 billion.
• TETL (HPC) Contract Value: Base term lease value is approximately $4.7 billion; potential value with 8-year renewal option rises to $8 billion. Average annual NOI expected to be $264 million (approx. 90% NOI margin) over the base term.
• Malaysia Expansion:
  • A102: 9.5 MW sold out; 5-year commitments represent >$800 million revenue; implied revenue of $17 million/MW/year.
  • A201: >70% contracted (21.7 MW); 5-year commitments represent >$1.7 billion revenue; implied revenue of >$21 million/MW/year.
  • A202: 65.1 MW secured via 10-year agreement.
• Crypto Mining:
  • Hash Rate: Expected to continue growing over time, subject to seasonal curtailment. Current fleet efficiency: 15.4 J/TH (down from 20.1 J/TH YoY).
  • ASIC Strategy: Will slow 2027 CapEx on equinix/ASIC mining; will continue Script (DASH) mining due to higher revenue per MW and competitive edge; no current plans for Zcash mining due to supply constraints and competition.
• Power Infrastructure: Total global portfolio ~3.1 GW capacity (~1.75 GW online). No plans to sell powered land; focus on holding assets for long-term AI/Crypto value.

Market and Competitive Outlook:

• Customer Mix: Targeting "neo-app" and AI startups rather than hyperscalers, as hyperscalers face less favorable profitability terms and AI startups are underserved with limited access to capital.
• Prepayment Trends: Expects customer prepayments to remain above 50% of CapEx in the near future; market pressure driving higher prepayments due to tighter credit for new cloud builds.
• U.S. vs. Malaysia Dynamics: Anticipates constrained capacity for data centers in the U.S. within the next 12 months (RFI constraints), making Malaysia a strategic hub for fulfilling immediate demand.
• Competition: Anticipates increased competition from new Zcash rig developers utilizing Samsung/TSMC wafers; views giving up Zcash as a strategic advantage given the shortage of machines and strong DASH economics.

Macro / Industry Outlook:

• Regulatory Environment (U.S.): Post-midterm election uncertainty expected to slow data center construction in the next 1–2 quarters, benefiting operators with already energized sites; expects long-term permissions to proceed but likely with higher community/tax contribution costs.
• Regulatory Environment (Norway): Anticipates delays in permitting and approvals for new data centers due to recent government moratoriums, though AI is viewed as a "fundamental" industrial element unlikely to be fully blocked.
• Financing Conditions: Credit markets remain "tough" for AI financing; lenders are differentiating sharply by structure; reliance on contracted cash flows, customer prepayments, and credit-supported Letters of Credit (LCs).
• Power Costs: Bitcoin mining power costs remained flat at $36,000 per Bitcoin despite higher average kWh prices ($0.047), driven by fleet efficiency upgrades.

Strategic Initiatives:

• TETL Project: Phase 1 delivery scheduled for year-end 2026 (Dec 31); Phase 2 deliveries expected Q1 2027. Securing project-level financing (~$500M) to replace equity; expected to be supported by $1.3B in Letters of Credit (years 1–6) and $475M cash reserve (years 7–8).
• Capital Allocation: Shifting focus from general expansion to contracted AI/HPC projects; limiting equity financing to early-stage investments; prioritizing non-dilutive project financing.
• M&A / Land Acquisitions:
  • Rockdale: Acquired additional acreage; plan to secure more grid power and build new AI capacity on new land; currently evaluating conversion of existing mining capacity vs. new builds.
  • Clarington: Continuing to pursue relief in lawsuit; current plan is Bitcoin mining rather than AI conversion.
  • Wethersfield: Existing land (40 acres) deemed sufficient for 300 MW facility; seeking community approval for expansion.
• Technology: Deploying proprietary SealMiner hardware (A4 Ultra-hydro at 9.45 J/TH) into own sites and co-mining partners.

Risks and Headwinds to Outlook:

• Financing Availability: Difficulty in securing credit for AI infrastructure projects due to tight capital markets; potential delays in closing TETL or GPU financings.
• Regulatory Delays: Potential permitting slowdowns in the U.S. (post-election) and Norway (moratoriums) could impact energization timelines and increase operational costs (community/tax contributions).
• Supply Chain: Tighter wafer availability from TSMC impacting ASIC (equinix) CapEx plans; competition for Zcash mining machines.
• Market Volatility: Bitcoin price fluctuations and "higher average power costs" could impact margins if fleet efficiency does not keep pace.
• Construction Risks: Completion of high-voltage connections and integrated systems testing at TETL remain critical path items.

Management Tone on the Future:

• Confidence Level: High confidence in delivery of TETL Phase 1 on schedule and on budget; confident in the "Power Advantage" strategy allowing flexibility between crypto and AI.
• Strategic Shift: Explicit move away from dependence on single market cycles; focus on "durable cash flows" from power assets with "disciplined and financeable growth."
• Execution Focus: Prioritizing closing financings (TETL, A102, A201) and execution over new equity raises; willing to phase discretionary CapEx if necessary.
• Competitive Position: Believes existing energized sites and secured power contracts provide a distinct advantage in a slowing construction environment.

Miscellaneous:

• Accounting Transition: Company transitioned to U.S. GAAP on January 1, 2026; prior periods recast.
• Liquidity: Cash and equivalents ended Q3 2026 at $163.7 million; total debt $1.95 billion.
• Prepayments: Deferred revenue (mostly AI Cloud prepayments) reached $342 million; prepayments fund >50% of related GPU deployments.
• Legal: Continuing to contest lawsuit regarding Clarington site; no update on Fox Creek beyond power plant progress.