Bitdeer shares rose in premarket trading after the company disclosed financial details and identified the tenant for a 16-year, $4.7 billion AI data center lease at its Tydal campus in Norway. The lease, signed with Volta Tydal AS, includes projections for revenue, operating margins, and credit support from JPMorgan and another institution.
Bitdeer’s shares surged following the disclosure of specifics about its lease agreement with Volta Tydal AS, a subsidiary of Volta, for a 16-year term with an eight-year renewal option. The agreement, which covers 121 IT megawatts of AI computing capacity across four data halls, is projected to generate average annual revenue of $2.4 million per IT megawatt, with 3% annual escalators.
The lease includes financial safeguards, with Volta’s obligations backed by $1.3 billion in letters of credit from JPMorgan and another institution. Bitdeer retains the right to terminate the agreement if Volta fails to meet milestones tied to the credit backstop, a provision that analysts say reduces risk for the company.
Benchmark Equity Research’s analysis suggests the agreement could yield $294 million in average annual revenue and $264 million in net operating income over the contract’s life. Bitdeer has estimated a net operating income margin of about 90%, reflecting the high margins typically associated with data center leases.
The lease’s financial structure, including a $500 million allocation for remaining capital expenditures, underscores Bitdeer’s confidence in the long-term viability of the Tydal campus. The company’s statement highlighted the partnership’s focus on energy efficiency and circular economy principles, aligning with broader industry trends.
The agreement, which could extend to $8 billion over 24 years with the renewal option, appears to solidify Bitdeer’s position in the AI infrastructure market. The firm’s ability to secure robust credit support and favourable financial terms has drawn attention from investors and analysts alike.
With $2.7 billion of the $4.7 billion base-term value firmly committed after accounting for Volta’s termination right, the deal represents a significant milestone for Bitdeer. The lease’s terms and financial assurances may influence investor sentiment and broader market perceptions of the company’s growth prospects.
Written by Oliver Grant
Markets Desk
