Mike Colonnese from H.C. Wainwright has reiterated his Buy rating on Bitdeer Technologies with an unchanged $25.00 price target, citing the company's accelerating AI cloud momentum and improving revenue visibility. According to TipRanks, Colonnese is a 5-star analyst with an average return of 55.9% and a 52.07% success rate. In another report released on August 13, BTIG also maintained a Buy rating on the stock with the same $25.00 price target. The analyst highlighted the newly signed, five-year Malaysia AI cloud contract as a pivotal milestone that secures roughly half of the A102 facility's capacity and is expected to generate around $400 million in total revenue, or about $80 million in annual recurring revenue starting in early 2027.
Bitdeer AI has secured a significant five-year customer agreement worth approximately $400 million for roughly half of its A102 data center capacity in Malaysia. According to the company's Wednesday announcement, the agreement covers about 50% of the A102 site's available capacity and was signed with an undisclosed customer described as being of 'high credit quality'. Revenue from the contract, along with associated service delivery costs, is expected to begin in the first quarter of 2027 when operations under the agreement commence. The liquid-cooled A102 facility is being built for rack-scale Nvidia GB300 NVL72 systems and can provide both GPU-cloud services and data hosting. Bitdeer said it is negotiating contracts for the rest of the facility and for capacity at other sites, with no financial contribution anticipated this year. The deal, announced on August 19, involves a high-credit-quality customer who will prepay more than 50% of the associated capital expenditures, offering a template for future agreements.
The deal provides Bitdeer AI with a contracted customer for a large portion of the Malaysian facility before commercial operations begin, while the company continues building data center capacity across several markets. As reported by the company, securing a customer before energization reduces the amount of uncommitted capacity Bitdeer will need to commerialize once A102 enters operation. The company had 2 MW of AI-cloud capacity operating in Cyberjaya as of July 31 and listed another 9.5 MW there as under development. Bitdeer also has a 10-year lease for 21.7 MW in Johor Bahru, with the facility expected to be handed over in the first quarter of 2027 and designed to support 128 GB300 NVL72 systems. The remaining capacity at the A102 site is reportedly generating strong interest from additional customers, which suggests Bitdeer could layer on a second major offtake agreement for the same site. Malaysia was chosen for reasons that include robust power availability and proximity to Southeast Asia's rapidly expanding enterprise AI market.
Bitdeer has set a target of reaching 350 megawatts of AI cloud data center capacity by the first quarter of 2028, placing the Malaysian agreement within a multi-year buildout that includes both cloud computing and dedicated infrastructure contracts. The company's active AI-cloud pipeline currently exceeds $2 billion and represents about 24.5 MW of additional capacity beyond what's already committed. Bitdeer said it generally seeks customer prepayments covering more than half the capital expenditure associated with its AI-cloud contracts, with the company planning to fund the broader expansion through those payments, operating cash flow and financing secured against contracted revenue. As a recognized NVIDIA Cloud Partner, Bitdeer occupies a preferential position in the GPU infrastructure ecosystem, with access to NVIDIA's latest hardware. Earlier this month, Bitdeer signed a 16-year lease covering 121 megawatts of AI computing capacity at its Tydal campus in Norway, carrying approximately $4.7 billion in contracted revenue over its initial term, though the company estimated another $500 million of capital expenditure would be needed.
Investors responded positively to the Malaysian customer agreement disclosure, with Bitdeer shares rising approximately 7% to close at $9.63 on Wednesday trading. The stock had previously risen about 7% during Wednesday trading before the announcement. The company reported $228.8 million in total revenue for the second quarter compared with $155.6 million a year earlier, though it recorded a net loss of $92.3 million for the quarter and held $496.3 million in cash, cash equivalents, and restricted cash as of June 30. AI cloud revenue reached $14 million in the second quarter, up from $1.3 million a year earlier, but the operation recorded a $2.3 million gross loss. The Malaysia contract follows Bitdeer's agreement this month to lease 121 MW of critical IT capacity at its Tydal campus in Norway, with the project's proposed credit support remaining subject to customary conditions.
Bitdeer is part of a broader trend among publicly traded Bitcoin miners using existing power and data center access to build AI businesses. Hut 8 and IREN announced large contracts in July, with Hut 8 signing its second 15-year, $9.8 billion agreement at the Beacon Point campus in Texas, while IREN announced $2.8 billion in new multi-year AI cloud contracts. TeraWulf has already reached a milestone where its computing business produces more quarterly revenue than its Bitcoin mining operation, generating $21 million from high-performance computing hosting compared with less than $13 million from digital asset mining in Q1 2026. The prepayment structure in the Malaysia deal offers particular significance, as when customers agree to cover more than half of capex upfront, it dramatically changes the risk profile of the project, with demand already having a contract attached and money moving before the first GPU is spun up. Retainna Lin, the company's VP of AI Cloud, credited execution speed for the company's traction, saying Bitdeer "entered a competitive process later than other providers and delivered ahead of them, enabling the customer's business timeline and establishing our credibility as we pursue additional AI Cloud opportunities across our portfolio."
