Bitcoin mining companies are starting to lease their power for artificial intelligence. Bitdeer Technologies Group has just announced the signing of a 16-year colocation contract with Volta Tydal AS on August 4, 2026. Through its subsidiary, Tydal Data Center, Bitdeer agreed to lease 121 MW of critical IT capacity for an AI and high-performance computing (HPC) campus in Norway, taking up a major portion of the total 133 MW power available at the site.
The initial contract value of this deal exceeds $4.7 billion. This figure could even swell to $8 billion over 24 years if Volta chooses to exercise an eight-year extension option. As the facility user, Volta plans to build a leading AI laboratory powered by NVIDIA GPUs and technology infrastructure built by Dell Technologies. However, the identity of the final customer who will use this computing facility has not yet been publicly disclosed.
But this major shift is not without risks and long-term calculations.
Who Will Finance This Development?
Despite being projected to pocket $4.7 billion in long-term revenue, Bitdeer still needs upfront capital. Management estimates an additional capital expenditure (capex) of $500 million, or approximately $4 million per IT MW, to complete the construction phase. To cover this initial funding requirement, the company plans to seek a new debt injection.
On the other hand, Volta came to the negotiating table with strong financial guarantees. Their obligations are backed by a $1.3 billion letter of credit facility from an affiliate of J.P. Morgan and another global financial institution. The contract sets an average rental rate of $202 per kilowatt per month for the first 16 years, with an agreed 3% annual payment escalation. These calculations make Bitdeer’s management confident that the colocation project will yield a net operating income (NOI) margin exceeding 90%, with an average annual revenue of $2.4 million per IT MW.
Termination Clause and Market Reaction
One striking detail of this multi-year deal is the exit loophole. Volta holds a fee-free termination right after the tenth year, even though the original contract period was agreed to run for the full 16 years.
The market responded positively to this diversification move. The BTDR stock price rose 7.8% to close at $11.37 in the latest session, cooling down from an initial surge that briefly touched 23%. This maneuver in Norway reinforces Bitdeer’s current strategy: shifting a portion of its power from Bitcoin mining to the AI colocation business.
For comparison, the June 2026 operational report showed Bitdeer recorded a self-mining capacity of 73 EH/s and produced 990 BTC during the month. At the same time, their AI cloud service began to show promise, with an estimated annualized revenue reaching $76 million at a 95% utilization rate. Bitdeer is currently developing two additional halls with a capacity of 47 MW for AI and HPC customers in the second half of 2027. The latest quarterly performance will likely be disclosed when the company releases its Q2 financial report on August 10.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
