Bitcoin mining companies Bitdeer Technologies and Iren recently made significant announcements that impacted their market performance. Bitdeer revealed an expanded strategy into artificial intelligence (AI) and high-performance computing (HPC), while Iren successfully closed a $1 billion convertible senior note offering and received multiple price target increases from analysts.
Key Takeaways
- Bitdeer Technologies is transitioning towards AI and high-performance computing, planning new data centers and GPU acquisitions.
- The company reported a 20.5% increase in Bitcoin mining for September, reaching 35 exahashes per second.
- Iren successfully closed a $1 billion convertible senior note offering, exceeding initial targets due to high demand.
- Analysts doubled price targets for Iren, citing its growing focus on AI cloud services and unique market position.
- Bitcoin miners experienced a rebound in market value following a recent cryptocurrency market downturn.
Bitdeer Expands into AI and High-Performance Computing
Bitdeer Technologies (BTDR) announced a strategic shift towards AI and high-performance computing, detailed in its September mining update. This move marks a significant evolution for the company, which has historically focused on Bitcoin mining.
In September, Bitdeer mined 452 Bitcoin, a notable 20.5% increase from August. This growth was attributed to a higher operational hashrate and the deployment of additional mining rigs. The company's hashrate reached 35 exahashes per second (EH/s) and is projected to hit 40 EH/s by the end of the month. Bitdeer plans to continue deploying new mining equipment and phasing out older, less efficient third-party machines to improve profitability and fleet efficiency.
Key Bitdeer Metrics
- September Bitcoin Mined: 452 BTC (+20.5% from August)
- Current Hashrate: 35 EH/s
- Projected Hashrate (End of Month): 40 EH/s
The company's expansion into AI and HPC includes significant infrastructure development. Bitdeer initiated design and layout planning for a new data center at its Clarington, Ohio, site. This facility will support both Bitcoin mining and AI operations, with easy conversion capabilities. The full 570 megawatts (MW) of power at the Ohio site are expected to be available by the third quarter of 2026. Substation operations are anticipated to begin in the first half of 2027.
Strategic Data Center Conversions and GPU Acquisitions
Bitdeer is also converting existing facilities to support its AI strategy. The 175 MW Tydal Phase 2 site is planned for conversion into an AI data center by the end of the fourth quarter of 2026. Additionally, the 13 MW Wenatchee site is undergoing a similar conversion process. To further bolster its AI capabilities, Bitdeer is seeking data center resources in Southeast Asia through rental agreements or new construction.
The company projects operating more than 200 MW of IT load for AI computing by the end of next year. Bitdeer's long-term goal is to acquire Graphics Processing Units (GPUs) for cloud deployment, effectively transforming all 200 MW of IT load into an "AI factory." This ambitious plan could potentially generate over $2 billion in annualized revenue run-rate (ARR) by 2026, according to company statements.
"Our strategic pivot towards AI and high-performance computing reflects a clear vision for future growth and diversification," a Bitdeer representative stated. "We are leveraging our existing infrastructure and expertise to capitalize on the rapidly expanding AI market."
Bitdeer's neo cloud business, Bitdeer.AI, reported $8 million in AI cloud ARR for September from its GPU cloud services. The company expects substantial growth in this segment through the end of the year. Its cloud services currently operate 584 GPUs with an 86% utilization rate. The remaining GPUs were installed in late September and are undergoing customer testing. Bitdeer aims to deploy 1,160 GPUs fully by the end of the year and is actively pursuing procurement deals for Nvidia's GB300 and B300 GPUs.
Iren Closes $1 Billion Offering, Receives Price Target Hikes
Iren (IREN), another prominent Bitcoin miner, announced the successful closure of its $1 billion convertible senior note offering. The offering, initially set at $875 million on October 9, saw purchasers exercise an option to buy an additional $125 million in notes due to strong demand. Iren expects to net approximately $979 million in proceeds after accounting for purchasers' discounts and commissions.
The company plans to allocate $56.7 million of these proceeds to fund capped call transactions. The remaining funds will support general corporate purposes and working capital. This capital infusion strengthens Iren's financial position and provides resources for its strategic initiatives.
Understanding Convertible Senior Notes
Convertible senior notes are a type of debt that can be converted into a specified number of common shares of the issuing company. They offer investors the security of a bond with the potential for equity upside. For companies, they can be a way to raise capital at a lower interest rate than traditional debt, especially if investors anticipate future stock price appreciation.
Analyst Confidence in AI Cloud Services
On Tuesday, two financial analysts significantly increased their price targets for IREN stock. Cantor Fitzgerald raised its price target to 100 from 49. The firm noted that Iren has "heavily leaned into" its artificial intelligence cloud services segment in recent months. Cantor Fitzgerald believes Iren's business model will increasingly resemble that of CoreWeave (CRWV), with an eventual complete focus on its Graphics Processing Unit (GPU) cloud. This shift, according to Cantor, should create "more room to run" for shares.
Cantor Fitzgerald also pointed out that Iren currently trades at a 75% discount compared to its neocloud peers based on contracted megawatts. The firm maintained an "overweight" rating on the shares. They highlighted the shortage of compute capacity among hyperscalers, which positions Iren uniquely due to its access to land, power, capital, and data center expertise.
BTIG also raised its price target on IREN stock, increasing it to 75 from 32, while maintaining a "buy" rating. BTIG observed a rising demand for "prompt power" from neoclouds and hyperscalers. This trend, they noted, creates opportunities for companies like Iren, which have readily available power, to secure high-performance computing (HPC) collocation contracts.
Market Reaction and Broader Crypto Landscape
BTDR stock rallied more than 24% early Wednesday, reaching highs last seen in early January. Bitdeer shares have shown an upward trend since the beginning of September, though they remained down 7.2% for the year through Tuesday's close.
IREN shares surged approximately 4% early Wednesday, extending their record highs. The stock has seen a remarkable increase of over 608% year-to-date. Other Bitcoin miners also experienced gains on Wednesday morning. Hut 8 (HUT) rose almost 10%, Bitfarms (BITF) gained almost 6%, and Cipher Mining (CIFR) climbed 2.5%.
The broader cryptocurrency market also saw some movement. Bitcoin traded around $111,400, up less than 1% over the past 24 hours. Ethereum rose approximately 2.4% over the same period, trading near $4,050. These gains come after a recent sell-off in the crypto market, where Bitcoin briefly dropped below $109,000 and Ethereum retreated near $3,620. This downturn followed threats of additional tariffs on China from President Donald Trump. CoinGlass reported that over 1.6 million crypto traders faced liquidations on Friday, totaling more than $19.13 billion from crypto markets.