Bitdeer Technology (BTDR) shares rise on Malaysia's $400 million AI infrastructure deal

Key Points

Bitdeer signs US$400 million Malaysian infrastructure cooperation agreement

A102 facility helps Bitdeer realize its 350MW infrastructure vision

Bitdeer business expansion: Beyond traditional Bitcoin mining

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Bitdeer has signed a five-year artificial intelligence infrastructure contract in Malaysia worth approximately US$400 million.

BTDR shares rose 8.36% to US$10.44 after the announcement of the major agreement.

The contract locks in approximately 50% of the capacity of the Bitdeer 9.5MW A102 data center.

The company maintains its goal of building 350MW of AI cloud infrastructure by the first quarter of 2028.

Bitdeer's global AI cloud potential contract pipeline currently exceeds US$2 billion.

Bitdeer Technologies Group (BTDR) rose 8.36% to US$10.44 after announcing a major Malaysian data center deal. The multi-year contract is expected to generate approximately $400 million in revenue from the operations of its A102 facility. In addition, the partnership strengthens Bitdeer's strategic plan to build 350MW of computing infrastructure by the end of the first quarter of 2028.

Bitdeer Technologies Group, BTDR

Bitdeer signs US$400 million Malaysian infrastructure partnership

Bitdeer AI successfully signed a contract for approximately 50% of its total capacity before its A102 facility was put into operation. The partner involved a customer whose identity was confidential, but according to Bitdeer, the customer had good credit credentials. Under the agreement, service delivery is expected to begin in the first quarter of 2027.

Therefore, the contract will not generate revenue or operating expenses throughout 2026. Bitdeer expects the five-year contract to generate approximately $400 million in revenue once the service is launched. These customer commitments also provide financial support for major infrastructure investments.

The company typically structures its cloud service agreements to ensure that customers 'upfront payments exceed 50% of the corresponding capital expenditures. This approach reduces the upfront capital burden associated with contract infrastructure development. Bitdeer supplements this with operating cash flow and financing arrangements guaranteed by contract revenue.

A102 facility advances Bitdeer's 350MW infrastructure vision

The 9.5MW capacity of the A102 data center is part of Bitdeer's comprehensive 350MW computing infrastructure roadmap. The Malaysian facility is designed to support liquid-cooled, high-density computing platforms serving multiple corporate customers. The location provides cloud-based solutions and dedicated data hosting capabilities.

Bitdeer remains committed to achieving its entire 350MW capacity target by the end of the first quarter of 2028. The company is building new infrastructure based on acquired customer needs across its expanding network of international data centers. Malaysia has strategic advantages, including reliable power infrastructure and growing demand for enterprise-class computing power in the region.

Currently, Bitdeer has an active cloud capacity pipeline of more than US$2 billion, covering approximately 24.5MW of computing resources. The company continues high-level discussions about the A102 's unallocated capacity and several other infrastructure sites. Leadership expects this commercial pipeline to continue to grow in the coming quarters.

Bitdeer Diversified Business: Beyond Traditional Bitcoin Mining

Bitdeer has strategically shifted its infrastructure focus from traditional Bitcoin mining to computing services and advanced data center operations. Earlier this month, the company implemented a 16-year agreement at its Tydal location in Norway to cover 121MW of production capacity. The partnership is expected to generate approximately $4.7 billion in revenue over its initial contract period.

The Norway project will be deployed in two phases, with Bitdeer building infrastructure for enterprise-level computing needs. The first phase of operations is expected to start around the end of 2026. Bitdeer plans to achieve the second phase of commercial operations in the first quarter of 2027. Bitdeer continues to operate bitcoin mining facilities in the United States, Bhutan, Norway and Ethiopia. However, long-term computing contracts are creating additional revenue streams for its existing power and data center assets. The Malaysia agreement further validates this expansion strategy while supporting Bitdeer's goal of deploying 350MW of infrastructure.