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DATE

Thursday, May 14, 2026 at 8 a.m. ET

CALL PARTICIPANTS

  • Executive Chairman — Haris Basit
  • Chief Executive Officer — Jihan Wu
  • Chief Financial Officer — Pretesh Dahya

TAKEAWAYS

  • Total Revenue -- $188.9 million, reflecting a 170% increase year over year and a decline from $224.8 million in Q4 2025 due to lower Bitcoin prices and increased diversion of SEALMINER output to internal use.
  • Adjusted EBITDA -- $14.4 million, representing an increase of approximately $60 million year over year while declining sequentially from $24.3 million in Q4 2025.
  • Gross Profit -- Negative $39 million, generating a negative 20.7% gross margin as a result of low Bitcoin prices, $70 million in noncash mining rig depreciation, and elevated seasonal power costs at Norway and Bhutan sites.
  • Self-Mining Hash Rate -- Increased from 55.2 exahash per second at year-end 2025 to approximately 65 exahash per second as of March 2026, equaling more than 400% growth year over year.
  • Bitcoin Production -- 668 Bitcoin mined in January, 705 in February, and 661 in March; modest March decline attributed to Norway and Bhutan seasonal factors, not underlying performance, with April production rebounding to 783 Bitcoin.
  • AI Cloud Annual Recurring Revenue (ARR) -- Grew from $10 million in January 2026 to $21 million in February and $43 million by March, with April ARR reaching approximately $69 million.
  • GPU Fleet -- 2,128 GPUs at quarter end with utilization up from 41% in January to 94% in March; by April, deployed over 4,000 GPUs.
  • SEALMINER A4 Series Launch -- Introduced April 7, 2026, with A4 Ultrahydro operating at 9.45 joules per terahash and A4 Pro Hydro/Pro Air at 10.9 joules per terahash, materially improving mining fleet efficiency to 16.4 joules per terahash as of March 31.
  • Cash Position -- Ended the quarter with $297.7 million in cash, cash equivalents, and restricted cash compared to $177.9 million at year-end 2025.
  • Total Borrowings -- Concluded the quarter at approximately $1.92 billion in total borrowings.
  • Convertible Notes Offering -- Raised $375 million in 5% convertible senior notes due 2032 in February 2026.
  • Net Cash Used in Operating Activities -- $346.9 million, a 42% sequential reduction from $594.7 million in Q4 2025, primarily driven by lower SEALMINER supply chain and manufacturing costs.
  • Mining Infrastructure CapEx Guidance -- Management reiterated guidance of $180 million to $200 million for crypto mining data center construction for the full year 2026, excluding hardware and AI/colocation CapEx.
  • Tydal Norway Data Center -- Entered formal agreement for 180 megawatts of gross installed capacity; first phase expected by December 2026; positioned to be Norway's largest operational AI center, with ongoing advanced lease negotiations.
  • AI Cloud Pricing Power -- Noted 40% increase in H100 hourly pricing since late 2025, with no measurable customer friction.
  • Clarington, Ohio Site -- Litigation by a neighboring company is expected to affect construction timing, though management expressed confidence in its legal position and intends to mitigate delays.
  • Rockdale, Texas Site -- 179 megawatts of incremental power capacity targeted for energization by year-end, bringing total site power capacity above 740 megawatts, while maintaining ongoing Bitcoin mining during AI development.
  • SEALMINER U.S. Manufacturing -- Signed lease for Reno, Nevada ASIC manufacturing facility, targeting construction start by Q3 2026.
  • AI Cloud Contracts -- Management stated that the majority of current GPU contracts are long term, generally spanning three to five years.

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RISKS

  • Gross Margin Pressure -- Management acknowledged, "Gross margins were under pressure from a combination of low Bitcoin price, the depreciation accounting impact of our fleet expansion and seasonal power costs."
  • Litigation at Clarington -- Executive Chairman Basit said, "we announced earlier about the litigation at that site. And we're still working through that, and we expect that, that will have an impact on the construction schedule."
  • Negative Operating Loss and EPS -- CFO Dahya reported, "Operating loss in the quarter was negative $159.5 million and earnings per share was negative $0.68."

SUMMARY

Bitdeer Technologies Group (BTDR +7.30%) reported sharply higher year-over-year revenue, significant expansion in self-mining hash rate, and rapid growth in AI cloud ARR, indicating diversification beyond core mining. Management emphasized differentiated strategic positioning through a 3 gigawatt global power portfolio, large-scale infrastructure conversions, and substantial progress at high-profile sites—including advanced leasing negotiations at Norway’s Tydal facility. Operational cash burn remained high but sequentially improved, aided by proceeds from a new $375 million convertible note. Guidance for mining CapEx was reaffirmed, with major U.S. and European projects progressing toward AI-centric colocation models.

  • Management highlighted resilient internal demand for SEALMINER ASICs with external sales de-emphasized, driven by constrained semiconductor supply and weak market prices for mining rigs.
  • Executive commentary stressed that, "the path to gross margin recovery is straightforward," identifying A4 deployment, power cost reductions, and scaling AI cloud revenue as the primary levers.
  • Customers for AI cloud resources are forming longer-duration contracts, increasing revenue visibility and cash flow stability.
  • U.S. infrastructure expansion is positioned as central to strategic growth, with management citing supportive domestic policy and multi-pronged site development.
  • Advanced negotiations are underway for AI data center tenants in Norway, with management stating colocation pricing is close to "the top of the market of what we've seen announced."

INDUSTRY GLOSSARY

  • Exahash per second: A measurement of computational power equal to 1018 hashes calculated per second, commonly used to quantify Bitcoin mining capacity.
  • Joules per terahash: Energy efficiency metric for cryptocurrency mining equipment, reflecting the power consumption required for one terahash of processing.
  • PUE (Power Usage Effectiveness): Ratio measuring data center energy efficiency; a PUE closer to 1.0 indicates higher efficiency.
  • Hyperscale: Refers to large-scale data center deployment typically serving high-volume cloud or AI workloads.
  • Neo cloud: Newer or next-generation cloud service providers distinct from legacy hyperscale operators.
  • ARR (Annual Recurring Revenue): Metric quantifying recurring revenue components expected over a one-year period from subscription or contract-based business.
  • GB200, H100, H200, B200, Vera Rubin: Designations for specific high-performance GPUs used for AI workloads, manufactured by NVIDIA.

Full Conference Call Transcript

Haris Basit: Thank you, Tesh, and good day, everyone. The first quarter of 2026 demonstrated Bitdeer's fundamental strength and resilience. In a challenging environment for the broader mining industry, our vertically integrated platform advanced across our 4 strategic businesses: Bitcoin mining, ASIC development, AI cloud and colocation data center infrastructure. We are making significant progress in each area. First, our Bitcoin mining production has grown almost 500% year-on-year. Second, we launched the industry-leading SEALMINER A4 series. Third, we are rapidly growing our AI cloud revenue. And fourth, we are well on our way towards converting our Tydal Norway facility into what is expected to be Norway's largest AI data center with a lease tenant in advanced stages of negotiation.

The combined strengths we see across our portfolio create optionality that is genuinely differentiated within our industry. We remain committed to Bitcoin mining and see significant opportunity ahead. At the same time, our 3 gigawatt global power capacity is a strategic asset that is increasingly relevant to AI and colocation customers. In Q1, we delivered total revenue of $188.9 million, an increase of approximately 170% year-over-year, with an adjusted EBITDA of $14.4 million, an approximate $60 million increase year-on-year. Tesh will cover additional details of the financials here shortly. But first, let's turn to a review of our power and infrastructure portfolio, which remains the foundational asset underlying everything we are building.

We continue to make meaningful progress across our global infrastructure footprint during the quarter. As of the end of March, we had approximately 1.7 gigawatts of electrical capacity online and a total global power pipeline of approximately 3 gigawatts. We believe this represents one of the largest and most AI suitable power portfolios among publicly listed companies in our sector, and it continues to provide us with strategic optionality as demand for large-scale compute infrastructure intensifies. Our core sites are sizable, dispersed across multiple continents and regulatory jurisdictions. They include access to renewable energy with attractive economics, featuring infrastructure designed to support intensive continuous operations.

These are characteristics that are difficult and time consuming to replicate, and they are increasingly what large-scale AI customers are looking for as they pursue power-constrained deployments. Over the past several months, we have seen the demand dynamics for AI data center capacity continue to sharpen. The supply and demand imbalance for AI compute has widened, and we expect this shortage to persist well into 2027 and beyond. Time to power remains a critical variable, and we are positioned to serve customers seeking both near-term and midterm capacity in a way that very few operators can match.

Against this backdrop, we are prioritizing colocation arrangements for our larger sites, which are best suited to serve hyperscale, Neo cloud and enterprise tenants seeking substantial committed capacity. For our smaller facilities, we continue to pursue AI cloud opportunities, deploying capacity on a contract-backed basis. This tiered approach reflects a disciplined allocation of capital across our portfolio, matching the appropriate commercial model to the scale and characteristics of each site. Let me walk through where we stand on key development sites. Tydal Norway remains our highest priority colocation opportunity.

On March 30, 2026, our subsidiary, Tydal Data Center AS, entered into a formal agreement with Data Center Installation AS, a specialized Norwegian contractor, to develop and convert the Tydal facility into an AI data center. The project will deliver 180 megawatts of gross installed capacity and the first phase is expected to be completed as early as December 2026. Upon completion, the Tydal facility is expected to be Norway's largest operational AI data center and one of the largest in Europe by installed capacity. This facility is being built primarily for colocation usage.

Designed in accordance with NVIDIA guidelines and closely following NVIDIA reference designs, it is intended to support deployment of both GB300s and NVIDIA's latest Vera Rubin AI technology. What makes Tydal particularly compelling to prospective tenants is a combination of attributes that are genuinely rare, stable baseload power enabled by 100% renewable sources and an excellent power usage effectiveness, or PUE, of approximately 1.1 enabled by the cold climate and chilled water available from a nearby lake. Furthermore, the site was built such that it substantially reduces retrofit capital requirements relative to a greenfield build. We expect our remaining CapEx costs to complete the Tydal site to be significantly lower than typical greenfield data center development costs.

Orders for most long lead equipment have been placed and decommissioning of Bitcoin mining rigs at the site is already underway. Upcoming near-term milestones include finalization of key equipment installation contracts and technical installation work in several of our data halls. Lastly, we have also begun technical due diligence work on behalf of our future tenant. We are in advanced stages of negotiations with a potential colocation tenant for Tydal. These discussions, when completed, would result in highly regarded and well-recognized end users. Morgan Stanley has been retained as our financial adviser for this project. Signing the Tydal lease agreement is management's highest priority. At Clarington, Ohio, we have 570 megawatts of power under contract with AEP.

This is one of the largest AI data center development opportunities in the United States among publicly listed companies in our sector. Design and preparation work is continuing for the site. As we have disclosed, litigation filed by a neighboring company could affect the timing of construction. Our attorneys feel strongly that we have a well-founded case and that the litigation has limited merit. On the business side, we are evaluating plans that can mitigate the impact on our overall development time line. We remain optimistic about the potential for the site, and we continue to build strong relationships with the local community and government officials at all our Ohio sites.

At Rockdale, Texas, we are pursuing a dual-track strategy that maintains our existing Bitcoin mining operation while developing new AI infrastructure on adjacent land. In addition, we are working with ERCOT on incremental power capacity of 179 megawatts targeted for energization by year-end. This will bring our total power capacity at Rockdale to over 740 megawatts. We are actively engaged in discussions with several prospective colocation tenants for this site. The Rockdale site benefits from its location in the ERCOT market and will be designed from the ground up to support AI workloads. This approach allows us to maintain revenue-generating mining operations throughout the development period rather than interrupting them.

Beyond these 3 primary sites, conversion projects are advancing at Wenatchee, Washington, and at Knoxville, Tennessee. Both sites are undergoing design and permitting work for AI data center conversion with the Wenatchee site and first phase of our Knoxville site targeted for completion in the fourth quarter. At Niles, Ohio, we are actively working towards the development of our 300-megawatt grid interconnected site with a target energization time line of the fourth quarter of 2028. We also plan to break ground on our 101-megawatt Fox Creek, Alberta, Canada site in June of this year. Furthermore, we continue to aggressively look for additional opportunities to invest in land and power capacity, and we will share these updates as appropriate.

The U.S. continues to be the primary hub for Bitdeer's global operations, bolstered by our confidence in pro-business, pro-innovation policies that support the growth of AI and digital assets. We remain firmly committed to scaling our presence in the U.S. On the Bitcoin mining side, the expansion of our self-mining platform continued throughout the quarter. Self-mining hash rate grew from 55.2 exahash per second at the end of December 2025 to approximately 65 exahash per second exiting March. 65 exahash per second represents a year-over-year increase of more than 400%. We mined 668 Bitcoin in January, 705 Bitcoin in February and 661 Bitcoin in March.

The modest decline in March relative to February reflects seasonal factors at our Norway and Bhutan facilities rather than any underlying deterioration in fleet performance as witnessed by our April production of 783 Bitcoin. We expect to see continued momentum in the months ahead. Our mining operations are not plateauing. The SEALMINER A4 series officially launched on April 7, 2026, represents the most efficient mining rigs anyone has delivered. The flagship A4 Ultrahydro model operates at 9.45 joules per terahash. The A4 series also includes the A4 Pro Hydro and the A4 Pro Air at 10.9 joules per terahash. These machines provide deployment flexibility across different site configurations and cooling environments.

The A4 Pro Air is one of the most efficient air-cooled mining rigs in the world. SEAL04-2 chip development continues at our U.S.-based design center. Importantly, our internal manufacturing capability means we are not subject to third-party hardware markups on these rigs when deploying them into our own fleet. This is a structural cost advantage over other mining operations. The inclusion of these new machines will continue to improve our fleet efficiency of approximately 16.4 joules per terahash as of March 31, 2026. That efficiency improvement, combined with our advanced chip design and supply chain resources, translates directly into lower cost per unit of hash rate produced, which means better mining margins at any given hash price level.

Over the next several quarters, we plan to leverage our growing fleet of SEALMINERS beyond our existing mining data center capacity and work with third parties to deploy incremental co-mining capacity at their facilities. This will allow us to maximize mining economics in the near term while maintaining flexibility to opportunistically drive SEALMINER sales into the second half of the year, depending on market conditions. On the SEALMINER manufacturing front, preparations for our Reno, Nevada factory are progressing. The facility lease has been signed and construction permit applications have been submitted to local municipal authorities, and we anticipate starting construction by Q3.

U.S.-based manufacturing is a core component of our vertically integrated strategy and aligns with both our operational resilience objective and the evolving trade and supply chain environment. Our AI cloud business has matured from a pilot service into a commercially distinct, structurally attractive business segment with rapidly growing revenue and a deepening enterprise customer base. For the AI cloud business, annual recurring revenue, which was approximately $10 million at the end of January, grew to approximately $21 million by the end of February and reached approximately $43 million at the end of March. GPU utilization climbed from 41% in January to 94% in March.

At quarter end, we had 2,128 GPUs deployed, including H100s, H200s, B200s and GB200s with 1,948 under active external subscription. More recently, in our April production update, we announced annual recurring revenue has now reached approximately $69 million with over 4,000 GPUs deployed. Customers are committing to longer durations, which improves revenue visibility and cash flow stability. Since late 2025, we have seen hourly pricing of H100s increase by approximately 40%. This is in direct response to demand levels, and the market is absorbing this increase without meaningful friction. This pricing power reflects the strong fundamentals of our AI cloud business. In January, we deployed our initial NVIDIA GB200 NVL72 infrastructure at our Cyberjaya, Malaysia facility.

This marks the first phase of an accelerated expansion designed to support enterprise-grade training workloads on the Grace Blackwell architecture. In February, we launched a managed Kubernetes service with GPU-native orchestration, providing enterprise customers with scalable infrastructure for AI training and inference. Our model studio platform now supports more than 50 leading open source models, enabling clients to deploy everything from basic inference to advanced multimodal applications through a single managed environment. In March, we showcased our integrated AI solutions at the NVIDIA GTC Conference, generating incremental business opportunities and strengthening our brand presence within the AI infrastructure ecosystem.

We are actively evaluating U.S. data center leasing opportunities and expect to bring GPU capacity and AI cloud services online for U.S. customers in 2026. Consistent with our stated approach, any large-scale U.S. GPU expansion will be backed by committed customer contracts. Turning to our balance sheet. In February, Bitdeer successfully priced an upsized offering of $375 million in 5% convertible senior notes due in 2032. We ended Q1 with cash, cash equivalents and restricted cash of $298 million. We expect that the bulk of our fiscal year '26 total financing needs will be addressed through project-level debt financing following a signed lease agreement for our Tydal, Norway site.

Now I will hand it back to Tesh to go over the detailed financials.

Pretesh Dahya: Thanks, Haris, and good day, everyone. It's great to be here, and I look forward to meeting many more of our shareholders in the coming months. Let me walk through our detailed financial results for the first quarter. Before I begin, I would like to remind everyone that all figures are in U.S. dollars. And as noted earlier, this is our first quarter reporting under U.S. GAAP. In addition to discussing results calculated in accordance with U.S. GAAP, we will also reference certain non-GAAP financial measures, including adjusted EBITDA.

Adjusted EBITDA excludes noncash fair value changes on our digital assets and convertible note derivative liabilities, along with certain other items, and we believe it provides the most consistent basis for assessing core operational performance. For a full reconciliation of non-GAAP measures, please refer to our earnings release published earlier today on Bitdeer's Investor Relations website. First quarter consolidated revenue was $188.9 million, an increase of approximately $119 million year-over-year. The year-over-year growth was driven primarily by the significant expansion of our mining hash rate and associated Bitcoin production, reflecting the continued SEALMINER deployment throughout 2025 and into 2026.

Sequentially, revenue declined from $224.8 million in the fourth quarter of 2025, reflecting lower average Bitcoin prices during the first quarter relative to the fourth quarter as well as a larger portion of our manufacturing output going towards self-mining deployment rather than external SEALMINER sales. Total gross profit was negative $39 million, reflecting a gross margin of negative 20.7%. Three converging factors drove the outcome. First, Bitcoin prices remained under pressure throughout the quarter. Second, our mining fleet carries substantial noncash depreciation expense amounting to $70 million, given our rapid expansion. As a reminder, we now depreciate mining rigs on a 3-year straight-line basis, and the pace of SEALMINER deployment throughout 2025 and into 2026 generates a significant concurrent charge.

Third, a seasonal power cost dynamics at our Norway and Bhutan facilities weighed on energy costs in the first quarter. Looking ahead, the path to gross margin recovery is straightforward. A4 Series deployment lowers our cost per Bitcoin mined, spring and summer rate normalization reduces electricity costs and the scaling of AI cloud revenue improves margin composition as that segment grows. Adjusted EBITDA was $14.4 million for the quarter, an increase of approximately $60 million year-on-year. The sequential decline from $24.3 million in the fourth quarter of 2025 reflects the gross margin dynamics described earlier. Operating loss in the quarter was negative $159.5 million and earnings per share was negative $0.68.

Net cash used in operating activities was $346.9 million, a 42% reduction versus the Q4 net cash used in operations of $594.7 million. The primary drivers of the sequential reduction were lower SEALMINER supply chain and manufacturing costs, partially offset by higher electricity costs. Turning to the balance sheet. We exited the first quarter with $297.7 million in cash, cash equivalents and restricted cash compared to $177.9 million at year-end 2025. Total borrowings at the end of Q1 were approximately $1.92 billion. For the full year 2026, we reiterate our guidance for total infrastructure capital expenditures in the range of $180 million to $200 million for crypto mining data center construction.

This guidance covers crypto mining infrastructure only and does not include CapEx for SEALMINER hardware, GPUs, AI cloud or colocation development. Additionally, we anticipate a continuation of growth in our mining hash rate, albeit at a more moderate pace than we have seen throughout the prior 2 quarters. In summary, the first quarter of 2026 was a quarter of execution and strategic advancement. Gross margins were under pressure from a combination of low Bitcoin price, the depreciation accounting impact of our fleet expansion and seasonal power costs. These factors are transitory and the forward catalysts for margin recovery are tangible and progressing, A4 deployment, power cost normalization, colocation and scaling our AI cloud.

Against that backdrop, we delivered on the key elements that will define the value creation we expect to deliver over the coming quarters. We launched the SEALMINER A4. We grew AI cloud ARR by 105% in a single month. We engaged a construction partner for Norway's largest AI data center, and we strengthened our balance sheet with $375 million in new capital. The colocation pipeline ahead of us is substantial, and we are pursuing it with full organizational focus. We entered the second quarter with strong operational momentum, a differentiated asset base and a team that has demonstrated its ability to execute at scale.

We are energized about what lies ahead and remain committed to delivering long-term value for our shareholders. Thank you. Operator, please open the call for questions.

Operator: [Operator Instructions] Our first question comes from the line of Greg Lewis with BTIG.

Gregory Lewis: Haris, I appreciate we're in advanced discussions on Tydal in Norway. That being said, kind of curious how you're thinking about that. I noticed in the comments, we talk about the design and planning. Like how much design knowing that there is some similarities between certain customers and what they expect from a data center, but there are some differences. How far in the process of the final design can we get? Is that something that we then need to wait for the customer to kind of move forward? And just as we think about the opportunity in Norway, like I know we're talking about hyperscalers. But like -- how important is that?

I know there's some big tech scandy companies maybe that we wouldn't think are traditional hyperscale -- that some people might not think are traditional hyperscalers, but are kind of big tech companies in Northern Europe. Just kind of curious if you could provide any color around some of those questions on that opportunity.

Haris Basit: Okay. Sure. Thank you, Greg. So with regards to the exact technical specifications, and there are differences between customers because different customers want to put in different machines versus GB300s versus Vera Rubin and the mix of those machines. And so -- but we have, I would say, the vast majority, almost entirely of the design in hand. We're still communicating with the most likely tenant here, the one that we're very close to signing, to make sure that all the design elements meet what their requirements are, which turn out to be very close to what the NVIDIA reference designs are. So we think we have that well in hand.

There's ongoing discussions, but just over very detailed type of stuff at present. And then with regard to the type of tenant, the 2 most important things here are that there would be a very sound credit, an investment-grade client or a very good credit wrapper. And so that's important. And then, of course, the economics of it are important. And we're focusing on those 2 things. We think we've -- if it goes through the way we expect -- in the time frame we expect, I think investors should be relatively pleased with both of those issues.

And I can't say too much more about the tenant, but it won't be too long before I think we can announce that deal.

Gregory Lewis: Understood. And then I did want to touch on the Clarington. In the press release, you mentioned -- and then actually in the prepared remarks, we mentioned the -- maybe some of the delays that are going on, realizing that, that is active. Could you kind of at least provide like some broad strokes around what is actually happening? I mean, yes, just kind of like that was news to us. So I just want to understand...

Haris Basit: I'm sorry, which...

Gregory Lewis: Some of those headwinds are that you're going to have to deal with?

Haris Basit: Which location are you referring to?

Gregory Lewis: I'm sorry, Clarington.

Haris Basit: Clarington. Well, we announced earlier about the litigation at that site. And we're still working through that, and we expect that, that will have an impact on the construction schedule. There's not really a lot more I can say about that. We are looking at ways of mitigating those impacts, but...

Gregory Lewis: I mean I guess what I would ask is the power is approved, so it would have to be something more around like the land user. Is that how -- is that kind of...

Haris Basit: Yes, it's not really a question of the power...

Operator: Our next question comes from the line of Mike Colonnese with H.C. Wainwright.

Michael Colonnese: Nice to see all the progress across your business lines here. So it sounds like SEAL is progressing nicely. I was wondering if you could provide a little bit more color around Rockdale. It sounds like you're going to simultaneously construct a new AI data center alongside your Bitcoin mining operations there. Can you talk about the level of client demand for that specific asset? It sounds like a really unique opportunity given the power capacity and really what the development time lines could ultimately be for that part of the portfolio for an AI colocation opportunity?

Haris Basit: Yes. I think it's a little early to predict the exact development time line for that. It's a very attractive site for AI. And one of the things to make it even more attractive would be to have more land, which is what we're working on at that site. But the power is there, and it's going to be expanded to even a larger envelope of power over 700 megawatts. So it's a good location for AI. We're speaking with several potential tenants there. They span from hyperscalers to Neo clouds and even some others. But the level of demand, I think, is very high.

I think the -- I can't really put a good time frame on the execution of that site yet. But we're moving forward on at least making sure that we have an appropriate land space where we can develop the AI data center while the Bitcoin mines are still operating.

Michael Colonnese: Got it. Very helpful color, Haris. Appreciate that. And then just sticking on the AI side, but more on the cloud business, that is seeing really strong growth here between GPU deployments, utilization rates. Just curious to get a sense as to how durable that revenue stream is here. Obviously, the utilization rates are helping, but to the extent you could share more information around the contracted element to it? And then also, if there are any sort of internal benchmarks you guys are looking to grow that business this year?

Obviously, you have multiple business lines you're working through, but thinking about GPU expansion from the around 4,000 that you guys have today, the best way for investors to think about that?

Haris Basit: Yes. I think there's tremendous demand for GPUs. And it's really on our part, limited by how quickly we can bring up these GPUs and AI cloud sites. But the demand is there. It's across the board. It's -- we mentioned we were able to raise the rates on our H100s by 40% and have no problem booking those. So we're also starting to get longer-term contracts. I don't know, Jihan, did you want to add anything to that? Maybe...

Jihan Wu: Okay. I muted myself. Okay. Right now, most of our contract is a long-term contract right now. It takes majority of our machines in long-term contract. And right now, customers will need to agree with us on such terms in 3 to 5 years.

Operator: Our next question comes from the line of Mike Grondahl with Northland Capital Markets.

Logan Hennen: This is Logan on for Mike. First, can you just provide some insight into the conversations around pricing and terms at Norway and also some color on just what the remaining hurdles are to getting a lease signed at the site?

Haris Basit: Yes. I don't think we're going to give you satisfaction on the pricing other than we think it's at the -- near the top of the market of what we've seen announced. So it's -- we think it's going to be quite good. Let's see. For what's left, there's just a lot of detailed work. We are in the late stages or advanced stages of negotiating the lease, and there's just a lot of small details. There's no one big thing that stands in the way. But -- all these small things do have to get handled before we can have a finished signed lease. So there's no one thing that's standing in the way here.

We're trying to move as fast as we can. It's our highest priority within the management chain here. And we're applying a tremendous amount of resources to it. There's just a lot of detail that needs to get covered here.

Logan Hennen: Got it. And that's great to hear on the favorable pricing. And then one more. In your April update, you mentioned that various other sites outside of Norway, Clarington and Rockdale are in advanced stage negotiations. Are you guys at a point to be able to formally call out those sites by name? And if not, can you just provide some color around how demand for your sites has changed over the last 90 days?

Haris Basit: Yes. I mean I think the last 90 days has stayed. It's pretty much -- it stayed very strong. I don't know how to quantify whether it's gotten a little stronger or not, but we haven't seen any diminishment, that's for sure. And yes, we are not in a position to announce the schedule for any of the other sites in terms of the colocation. The AI cloud sites, we have announced Q4 of this year for Wenatchee and the first phase of the Knoxville, Tennessee site. So is there something different than that you were looking for?

Logan Hennen: No, that's all good. Got it. Congrats on an impressive start to 2026.

Operator: Our next question comes from the line of Kevin Cassidy with Rosenblatt.

Kevin Cassidy: Yes. Congratulations also on all the progress you have. Just going back to the AI cloud, very impressive that you're able to raise hourly rates by 40% on the H100. What's the trend as you go to the higher performance GPUs? What kind of rate increase should we expect on the hourly rate?

Haris Basit: Maybe I'll ask Jihan to answer that question since I don't have a good feel for that.

Jihan Wu: Well, because previously, we have mostly signed with a short-term contract. So after those contract ends, we have -- we had an opportunity to raise the rates. But right now, most of our GPU cost is in kind of a long-term contract. So the rate will be relatively stable from now.

Haris Basit: I guess your [Technical Difficulty] how the rate differs from the high-end machines to the 1,800, right, is something like that or...

Kevin Cassidy: Yes. And as we...

Jihan Wu: Yes. If we go into higher-end GPU, that means we are deploying new GPU. And right now, all those contracts are in negotiation where we are preparing the data centers and the installation work. Generally, we can feel that the customers are quite competitive on the demand side, and we needed to carefully choose our clients that can be stable and also profitable. That's what where we need to wait. So I think generally, I'm quite optimistic about the profitability of the GPU renting AI cloud business because the customers are quite willing to pay good price to get the GPU.

Kevin Cassidy: Okay. And just maybe it wouldn't be [indiscernible] your conference call if I didn't ask about the SEAL04 second version. You mentioned you're still working on it, but do you have any timing? And are we -- what the targeted joules per terahash is?

Haris Basit: No, we haven't changed the target, but -- and we're not ready to announce new timing on that yet. So I sorry about that.

Kevin Cassidy: Okay. Just obliged to ask that question every...

Haris Basit: [Technical Difficulty]

Operator: Our next question comes from the line of Nick Giles with B. Riley Securities.

Nick Giles: Maybe just a follow-up from an earlier question around to what stage across some of these other sites would you be willing to kind of build for colocation purposes? And what level of CapEx would be associated with that? And then do you have a rough estimate of how much CapEx you've deployed to date towards colocation conversions across the platform?

Haris Basit: We haven't announced or revealed our CapEx for colocation conversion other than to say that the amount of capital required in Norway is remarkably less than the normal amount of CapEx required. We expect that the CapEx requirements at other sites, the U.S. sites will be closer to the typical amount needed to build an AI data center that we will be able to get some of the savings that we had in Norway at other sites, but not to the same extent.

Nick Giles: Understood. I appreciate that, Haris. Maybe switching gears, just on the Reno Nevada site, the facility, the ASIC facility, any kind of preliminary estimates on what CapEx could be there? And then how would this change your margin profile in that business, if at all?

Haris Basit: Yes. I think just to remind everyone, that's the site where we're assembling ASIC mining rigs. Jihan, do you have an answer for that question?

Jihan Wu: [ Probably, no. ]

Haris Basit: Yes. So I don't think -- we haven't reported the amount of capital required for that site. It's significantly smaller than the amount of capital required for like a data center or even a Bitcoin mining site. What was the other part of that question?

Nick Giles: Really, I was just curious...

Haris Basit: The margin.

Nick Giles: The margin profile of that business, yes.

Haris Basit: Well, it will be a little bit more expensive to build in Reno than it will be in Asia or to assemble there. But most of the cost of our mining rigs is really embedded in the silicon itself, which is still made by TSMC in the same location. So we think that the incremental cost of assembling in the U.S. will be covered by, for example, tariffs and things like that. So we think it will be a very good location for us and within a reasonable price increment of building in Asia, especially if you account for tariffs.

Operator: Our next question comes from the line of John Todaro with Needham.

John Todaro: Congrats on the progress so far. I guess just going back to Rockdale and Clarington, obviously, some pieces need to still be completed there to get development moving along. I think my understanding is it's mostly acreage. I guess just what are some of the limiting factors there? Are we just kind of in negotiation processes for that? Do you need some additional cash to get those items done? I guess just trying to understand that a little bit better to see how far along we can be.

Haris Basit: Well, I think one way to think about it is that the amount of power, say, in Rockdale is much larger than the amount of land, right? So that's something that we want to rectify. And it's really around those kinds of issues that we want to make sure we're able to fully utilize all of the power that we have at those locations. And of course, in Clarington, there's the additional complication of the litigation.

John Todaro: Okay. Understood. And then shifting to Bitcoin mining machine sales. So obviously, a lot of the U.S. public miners are pulling back as they shift towards AI HPC. You guys have had a little bit more external sales in international markets. So wondering how does that change the sales strategy? Is it actually a benefit versus a negative that there's more public U.S.-focused miners pulling back and maybe that shifts more opportunity to do sales internationally? I guess just trying to frame up how that shifts for external sales a bit longer term here.

Haris Basit: So one thing I just want to remind you is that we're not really pushing that hard for external sales at this point. We -- almost all of the output is being used internally by our own data centers. We do, as you mentioned, sell internationally. So the fact that a lot of the U.S. mining companies are pulling back is not -- has a little mitigated impact based on that. Then -- I don't know, Jihan, do you want to make any additional comments on Bitcoin mining ASIC sales or demand?

Jihan Wu: Right now, because of the constrained supply of the semiconductor fabrication service, we intend to do more self-mining. And self-mining is also -- I believe it's a profitable business. So we still have some Bitcoin mining sites. We haven't filled it. And we also have a lot of partners that want to do co-mining partnership with us, which means that we provide the Bitcoin mining rigs and they provide the Bitcoin mining farm, so we can share the Bitcoin mining hash rate, and we will get the majority out of it. And the electricity bill is to be transparent and no markup from the mining partnership side. It's quite scalable.

So we are not very aggressive on selling the mining rig right now. Right now, the Bitcoin price is still in its bearish situation. And if we sell the mining rigs, we will have to do it at a very bad price, I think. So I think to expand our self-mining is the best economical decision for our company.

John Todaro: Understood. So the focus is, yes, almost primarily on internal.

Operator: [Operator Instructions] Our next question comes from the line of Brian Kinstlinger with Alliance Global Partners. All right. I don't have a response from Brian. All right. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Haris for closing remarks.

Haris Basit: Well, I think actually, it's Tesh, do you have some closing remarks, Tesh?

Pretesh Dahya: Yes. I think we just want to thank everyone for joining the call. We're exiting the first quarter with clear operational momentum here, a focused strategy, and we're really executing decisively on our AI infrastructure pipeline. Thank you for joining us today, and we look forward to driving sustainable long-term value creation.

Haris Basit: Thank you, everyone.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.