Bitdeer Technologies (NASDAQ:BTDR) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call.
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Summary
Bitdeer Technologies reported a significant 170% year-over-year increase in total revenue, reaching $188.9 million in Q1 2026, with an adjusted EBITDA of $14.4 million.
The company has made substantial progress in its strategic initiatives, including a 500% increase in Bitcoin mining production, launching the Seal Miner A4 Series, and significant growth in AI cloud revenue.
Future outlook includes converting the Title Norway facility into Norway's largest AI data center and expanding the AI cloud business, with GPU capacity expected to rise, backed by committed customer contracts.
Operational highlights include a global power capacity of 3 gigawatts and continuing expansion of the mining hashrate, achieving 65 exahash per second by March 2026.
Management highlighted the transition to US GAAP accounting, potential non-cash volatility in earnings due to digital asset valuation changes, and the strategic focus on AI and colocation to capitalize on the growing demand for compute infrastructure.
Full Transcript
OPERATOR
Hello and welcome to Bitdeer Technologies first quarter 2026 earnings conference call. At this time, all participants are on a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again. I would now like to hand the conference over to Tesh Dyer. You may begin.
Tesh Dyer
Thank you Operator and good morning everyone. Welcome to Bitdeer Technology Group's first quarter 2026 earnings conference call. Joining me today are Jihan Wu, Founder, Chairman and Chief Executive Officer, Matt Kong, Chief Business Officer and Harris Bassett, Chief Strategy Officer. Today's call will begin with Harris providing a review of the company's first quarter results, operational progress and strategic direction and I will close with an update on our financial performance. To accompany today's call, we have provided a supplemental investor presentation available on Bitdeer's investor relations website under Webcasts and Presentations. Before management begins the formal remarks, I would like to remind everyone that during today's call we may make certain forward looking statements. These statements are based on management's current expectations and are subject to risks and uncertainties which may cause actual results to differ materially. For a more complete discussion of forward looking statements and the risks and uncertainties related to Bitdeer's business, please refer to the company's filings with the U.S. securities and Exchange Commission. I also want to note that beginning with the first quarter of 2026, Bit Deer has transitioned from international financial reporting standards to US generally accepted accounting principles. As part of this transition, Bitdeer has adopted FASB ASU 2023-08 which requires digital assets held to be measured at fair value each reporting period. Changes in the fair value of our digital assets will flow through GAAP net income and may introduce noncash volatility into reported earnings. We will discuss this further during the financial Review. With that, I will now turn the call over to Harris.
Harris Bassett (Chief Strategy Officer)
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 four strategic 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 Seal Miner, a 4 Series. Third, we are rapidly growing our AI cloud revenue and fourth, we are well on our way towards converting our Tital 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 financial tier 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 at 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 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. Tital Norway remains our highest priority co location opportunity on March 30th, 2026, our subsidiary Tital Data Center AS entered into a formal agreement with Data Center Installations as a specialized Norwegian contractor to develop and convert the TETL 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 Titels 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, Nvidia's latest Vera Rubin AI technology technology. What makes TETL 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 TETL 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 tetl. These discussions, when completed, would result in highly regarded and well recognized end users. Morgan Stanley has been retained as our financial advisor for this project. Signing the title 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 timeline. 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 three 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 toward the development of our 300 megawatt grid interconnected site with a target energization timeline 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 US continues to be the primary hub for BitDare'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 US on the Bitcoin mining side, the expansion of our Self mining platform continued throughout the quarter. Self mining hashrate 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 Seal Miner A4 series, officially launched on April 7, 2026 represents the most efficient mining rigs anyone has delivered. The flagship A4 Ultra Hydro model operates at 9.45 joules per thick. The A4 series also includes the A4 Pro Hydro and the A4 Pro Air at 10.9 joules per th. 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. Steel 042 chip development continues at our US 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 steel miners beyond our existing mining data center capacity and work with third parties to deploy incremental coal mining capacity at their facilities. This will allow us to maximize mining economics in the near term while maintaining flexibility to opportunistically drive Seal Miner sales into the second half of the year depending on market conditions. On the Seal Miner 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. US based manufacturing is a core component of our vertically integrated strategy and aligns with both our operational resilience objectives 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 H1 hundreds, H2 hundreds, B2 hundreds and GB2 hundreds 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 H1 hundreds 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 US Data center leasing opportunities and expect to bring GPU capacity and AI cloud services online for US customers in 2026. Consistent with our stated approach, any large scale US GPU expansion will be backed by committed customer contracts. Turning to our balance sheet in February, BitDare 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 Tital Norway sites. Now I will hand it back to Tash to go over the detailed financials.
Tesh Dyer
Thanks Harris 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 US dollars and as noted earlier, this is our first quarter reporting under US gaap. In addition to discussing results calculated in accordance with US gaap, we will also reference certain non GAAP financial measures including adjusted ebitda. Adjusted EBITDA excludes non cash 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 Bit Deere's investor relations website. First quarter consolidated revenue was 1 88.9 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 hashrate and associated bitcoin production reflecting the continued Seal Miner 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 Seal Miner 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 non cash depreciation expense amounting to 70 million given our rapid expansion. As a reminder, we now depreciate mining rigs on a three year straight line basis and the pace of steel Miner 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. A 4 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 Seal Miner 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 Seal Miner 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 two 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, CO location 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 silo miner 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're pursuing it with full organizational focus. We enter 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
Thank you ladies and gentlemen. As a reminder to ask the question, please press star 11 on your telephone then wait for your name to be announced. To withdraw your question, please press star one one again again. Please stand by while we compile the Q and A roster. Our first question comes from the line of Greg Lewis with btig. Your line is open.
Greg Lewis
Yeah, hey, thank you and good morning and good afternoon and thanks for taking my questions Harris. I appreciate we're in advanced discussions on Tisdale and Norway. That being said, kind of curious how you're thinking about that. I noticed in the comments we talk about the design planning 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, I know we're talking about hyperscalers, but how important is that? I know there's some big tech scandi companies maybe that we wouldn't think are traditional hyperscalers 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.
Harris Bassett (Chief Strategy Officer)
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 Rubins and the. And a mix of those machines. And so. But we have, I would say, you know, 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, you know, 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 two most important things here are that there be a very sound credit 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 two things. We think we've, you know, if it goes through the way we expect in the timeframe 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, you know, it won't be too long before I think we can announce that deal. Understood.
Greg Lewis
Thank you for that. And then I did want to touch on the Clarington, you know, in the press release you mentioned. And then actually in the prepared remarks we mentioned the, you know, 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, yeah, just kind of like that. That was news to us. I just want to understand, I'm sorry, what some of those headwinds are that you're going to have to deal with.
Harris Bassett (Chief Strategy Officer)
Which location are you referring to? Oh, I'm sorry, Clarington. Oh, Clarington. Well, we announced earlier about the litigation at that site and we're still working through that. And you know, we expect that that will have an impact on the construction schedule. There's not really a lot more I can say about that where we are looking at, you know, ways of mitigating those impacts. But I mean, I guess what I would ask is that the power is approved, so it would have to be something more around like the land user. Is that. How is that kind of. Yeah, it's not really a question of the power. Okay. All right, thank you, guys. Thank you, Greg.
OPERATOR
Our next question comes from the line of Mike Colonise with HC Wainwright. Your line is open.
Mike Colonise
Hi, good morning, guys. Thank you for taking my questions. Nice to see all the progress across your business lines here. So it sounds like Teal is progressing nicely. I was wondering if you could provide a little bit more color on 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? Sounds like a really unique opportunity given the power capacity and really what the development timelines could ultimately be for that part of the portfolio for an AI colocation opportunity?
Harris Bassett (Chief Strategy Officer)
Yeah, I think it's a little early to predict the exact development timeline 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 good location for AI. We're speaking with several potential tenants there. They span, you know, from hyperscalers to neoclouds 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. Got it. Very helpful Color Harris. Appreciate that. And then speaking on the AI side, but more on the cloud business that
Mike Colonise
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 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, you know, the best way for investors to think about that, I think there's tremendous demand for GPU 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. You know, we mentioned we were able to raise the rates on our H1 hundreds by 40% and have no problem booking those. So we're also starting to get longer term contracts. Jihad. Did you want to add anything to that? Maybe.
Harris Bassett (Chief Strategy Officer)
You're on mute, John.
Jihan Wu (Founder, Chairman, and Chief Executive Officer)
Okay, I'm muting myself. Okay. Right now most of our contract is long term contract. Right now it takes majority of our machines in long term contract. And right now customers, we need to agree with us on such terms during three to five years.
Mike Colonise
Got it. Very helpful color guys. Appreciate you taking my questions. Thank you, Mike.
OPERATOR
Our next question comes from the line of Mike Grundall with Northland Capital Markets. Your line is open.
Logan
Hey guys, this is Logan on from Mike, thanks for taking our question. 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 get
Harris Bassett (Chief Strategy Officer)
a lease signed at the site? Thanks. Yeah, 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, you know, 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, you know, 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 you know, these, all these small little things do have to get handled before we can have a finish signed lease, lease. So there's, yeah, 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 you know, we're applying a tremendous amount of resources to it. There's just a lot of detail that needs to get covered here. 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, Clarendon
Logan
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?
Harris Bassett (Chief Strategy Officer)
Thank you. Yeah, I mean I think the last 90 days has stayed, it's pretty much, you know, 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 yeah, we are not in a position to announce the schedule for any of the other sites in terms of the co location, the AI cloud sites we have announced, you know, Q4 of this year for Wenatchi and the first phase of of the Knoxville, Tennessee site. So is there something different than that you were looking for? No, that's all good. Thank you guys and congrats on an impressive start to 2026. Thanks Lyndon.
OPERATOR
Our next question comes from the line of Kevin Cassidy with Rosenblack. Your line is open.
Kevin Cassidy
Yes, thanks for taking my question and congratulations also on all the progress you have. Just going back to the AI cloud. Very impressive that you 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 wave rate? Maybe I'll ask Jihan to answer that question since I don't have a good feel for that.
Jihan Wu (Founder, Chairman, and Chief Executive Officer)
Well, because previously we have mostly signed with short term contract. So after those contract ends we have we had an opportunity to read the rates. But right now most of our GPU cards is in kind of a long term contract. So the rate will be relatively stable from now on.
Kevin Cassidy
Okay. I guess how the rate differs from the high end machines to the 1800s, right? Is something like that or. Yeah, yeah and yeah. Better leverage. Yes.
Jihan Wu (Founder, Chairman, and Chief Executive Officer)
If we go into higher end GPU that means we are deploying new GPU and right now all those contracts are negotiation where we are preparing the data centers and installation work. Generally we can feel that the customers are quite competitive on the demand side and we needed to carefully to choose our clients so they can be stable and also profitable. That's what we are. We need to wait. So I think generally I'm quite optimistic about the profitability of the GPU renting aircraft business because the customers are quite willing to pay good price to get the gpu. I see.
Harris Bassett (Chief Strategy Officer)
Okay. Thank you. And just maybe it wouldn't be a bit dear conference call if I didn't ask about the seal 04, the second version you mentioned. You're still working on it, but do you have any timing and are we who's what the targeted joules per terahash is. We haven't changed the target but. And we're not ready to announce new timing on that yet. So sorry about that. Okay. Just obliged to ask that question every time I was surprised that wasn't your first question, Kevin. Okay, thank you. Congratulations.
OPERATOR
Our next question comes from the line of Nick Gills with B. Riley Securities. Your line is open.
Nick Gills
Thanks operator. Good morning everyone. Maybe Just to follow up from an earlier question around, you know, to what stage across some of these other sites would you be willing to, you know, kind of, kind of build for colocation purposes and what level of CAPEX would be associated with that? And then, you know, do you have a rough estimate of how much capex you've deployed to date towards colocation conversions across the platform?
Harris Bassett (Chief Strategy Officer)
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 US 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 Gills
Understood. Appreciate that, Harris. 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?
Harris Bassett (Chief Strategy Officer)
Yeah, I think that just to remind everyone, that's the site where we're assembling ASIC mining rigs. Do you have an answer for that question? Yeah, so I don't think we've reported. 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, really? I was just curious. The margin. The margin profile of that business. Yeah. Well, it will be a little bit more expensive to build in Reno than it will be in Asia or to assemble there. But, you know, most of the cost of our mining rigs is really embedded in the silicon itself, which is, you know, still made by TSMC in the same location. So we think that the incremental cost of assembling in the US Will be, you know, 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.
Nick Gills
Understood. All right, thanks a lot, Harris.
OPERATOR
Thank you. Our next question comes from the line of John Todaro with Needham. Your line is open.
John Todaro
Hey, guys, thanks for taking my question. Congrats on the progress so far. I guess just going back to Rockdale and Clarington.
Harris Bassett (Chief Strategy Officer)
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. 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. 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. Okay, understood. Thanks. And then shifting to bitcoin mining machine sales. So obviously a lot of the US 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 US 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.
Jihan Wu (Founder, Chairman, and Chief Executive Officer)
So one thing I just want to remind you that we're not really pushing that hard for external sales at this point point where 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 US mining companies are pulling back is not as has a little mitigated impact. Based on that then, you know, I don't know. Jihan, did you want to make any additional comments on bitcoin mining asic sales or demand?
John Todaro
Right now because of the constraint supply of. Semiconductor fabrications service, we intend to do more self mining and self mining is
Harris Bassett (Chief Strategy Officer)
I believe it's profitable business. So we still have some bitcoin mining sites. We haven't filled it. And we also have lots 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 a majority out of it. And the electricity bill needs to be transparent and no markup from the command mining partnership side. It's quite scalable. So we are not very aggressive on selling the money rig right now. Right now the bitcoin price is still in its bearish situation and if we sell the manux 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.
Tesh Dyer
Understood, thanks on that. So the focus is. Yeah, almost primarily on. Okay, thank you for that, gentleman. Appreciate it.
OPERATOR
Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star one one on your telephone. Our next question comes from the line of Bryant Kinslinger with Alliance Global Partners. Your line is open. Bryant, your line is open. Check to see if you're on mute. All right. I don't have a response for Bryant. 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 Harris for closing remarks.
C
I think actually it's Tash. Do you have some closing remarks, Tash?
A
Yeah, I think we just want to thank everyone for joining the call. You know, 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 to sustainable long term value creation.
C
Thank you everyone.
B
Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
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