Key Highlights
- Bitdeer stock jumped after the company signed a $4.7 billion AI data center agreement in Norway.
- The 16-year deal could generate up to $8 billion in revenue if extended and marks a major expansion into AI infrastructure.
- Investors are now waiting for Bitdeer’s August 10 earnings report for updates on the project and financing.
Bitdeer echnologies Group (NASDAQ: BTDR) stock rose sharply on Tuesday after the company announced one of its biggest artificial intelligence (AI) infrastructure agreements to date.
At the time of writing, BTDR was trading at $12.36, up about 8.75% in the last 24 hours. The rally pushed Bitdeer’s market value to around $2.97 billion as investors reacted to the company’s latest expansion into AI infrastructure.
The stock bounced back from an intraday low below $11.50 as buyers stepped in after the announcement. Trading activity also picked up, with around 10.3 million shares changing hands.
Why is BTDR stock surging today?
The jump came after Bitdeer announced that its wholly owned subsidiary, Tydal Data Center AS, had signed a 16-year colocation and services agreement with Volta Tydal AS.
According to the official release, the project will be built at Bitdeer’s AI and high-performance computing campus in Tydal, Norway. The agreement is expected to bring in about $4.7 billion in contracted revenue during the first 16 years. It also includes a one-time option to extend the deal for another eight years. If that happens, the total value of the agreement could rise to about $8 billion over 24 years.
What the $4.7 billion deal includes
As part of the deal, Bitdeer will provide 121 megawatts of IT capacity, supported by about 133 megawatts of total power. The facility will run NVIDIA graphics processing units (GPUs), which are widely used to train and run AI models.
Volta plans to use the site to support a leading AI laboratory, while Dell Technologies will provide the technology. However, the companies did not reveal the name of the final customer.
Bitdeer said the tenant will pay an average of about $202 per kilowatt every month during the 16-year contract. The tenant will also cover electricity costs, while payments under the agreement will increase by 3% each year. The company estimates the project could generate about $2.4 million in annual revenue for every IT megawatt, with a projected net operating income margin of around 90%. Bitdeer added that these are company estimates and should not be treated as reported revenue or profit.
This announcement is crucial because it removes a major question surrounding the project. Bitdeer first revealed the planned lease in June, but the agreement depended on Volta completing several customer and supplier requirements before it could become official.
The company said those conditions have now been met, allowing the agreement to become fully executed and its commercial terms to be disclosed.
Bitdeer expands its AI infrastructure
The deal is another sign that Bitdeer is putting more focus on AI infrastructure while continuing its Bitcoin mining business. The company is developing the Tydal site into a 180-megawatt AI data center based on NVIDIA reference designs. Once completed, it is expected to become one of the largest AI data center campuses in Norway. Bitdeer also plans to build two more data halls with a combined capacity of 47 megawatts for future AI and high-performance computing customers.
Bitdeer will keep full ownership of the Tydal campus, and no new company shares or warrants were issued as part of the transaction. The company said it still needs about $500 million to complete construction and plans to raise the money through additional debt. Volta’s obligations are expected to be backed by about $1.3 billion in letters of credit arranged by affiliates of J.P. Morgan and another global financial institution, subject to the required conditions.
Bitcoin sales add context
The announcement comes about months after Bitdeer restructured its treasury strategy by selling all of its Bitcoin (BTC) holdings.
At the time, the company had already mined 189.8 BTC but sold it in full. It also sold another 943.1 BTC from its existing treasury. Mining companies often keep part of their Bitcoin holdings so they can benefit if prices rise, making Bitdeer’s decision an unusual one. The company said its “pure holdings,” which exclude customer deposits, now stand at 0 BTC.
Investors await next update
Investors are now focused on August 10, when Bitdeer is scheduled to report its second-quarter earnings.
The market will be looking for updates on financing, construction progress, and when revenue from the Norway AI project could begin appearing in the company’s financial results.
Also Read: SpaceX Tokenized bStock SPCXB Price Jumps 7% to $116 in Volume-Driven
