Bitdeer Technologies Group (NASDAQ:BTDR) reiterated in its September 16 operating update that it had fully contracted graphics processing unit (GPU) capacity at its A102 facility in Malaysia. The facility has 9.5 megawatts of IT capacity, with long-term commitments representing more than $800 million of expected revenue.

The five-year commitments were previously disclosed in an announcement posted August 31. They imply more than $160 million in average annual revenue before costs, an illustrative calculation rather than annual guidance. The operating update lists data-center readiness for November 2026 and expects revenue recognition to begin in the first quarter of 2027.

The investment question now shifts from finding customers to delivering services at an attractive return.

Bull Case

Contracting capacity before energization gives Bitdeer Technologies Group (NASDAQ:BTDR) a firmer basis for committing capital. Signed demand can help management coordinate equipment purchases, deployment and financing around identifiable customers.

The five-year term also provides a period over which to evaluate equipment spending against expected receipts. If construction and deployment stay on schedule, A102 could establish a meaningful source of AI revenue with greater visibility than projects still under commercial discussion.

Bitdeer Technologies Group (NASDAQ:BTDR) says it generally seeks customer prepayments covering approximately 50% of associated capital expenditure. Achieving that structure could reduce the cash required before service begins and limit reliance on additional borrowing or equity issuance.

Customer advances would finance part of the build while creating obligations to provide future services. Their value lies in improving funding timing, with profitability still determined by the cost of fulfilling the contracts.

A102 could also provide an operating reference for subsequent projects. Reliable service and documented returns would offer stronger evidence that the expansion model can be repeated than signed capacity alone.

Bear Case

The $800 million figure covers expected revenue over the contracts. It is neither current revenue nor profit, and the illustrative annual average does not establish how revenue will be distributed across individual years.

Bitdeer Technologies Group (NASDAQ:BTDR) must turn site readiness into a functioning GPU service. Power availability, hardware deployment, cooling, and network performance all matter. Delays could push receipts further out while capital remains tied up.

The update does not disclose A102-specific prepayment receipts, capital expenditure, or margin guidance. Investors therefore cannot calculate the remaining funding requirement or a credible project return from the contract value alone.

For Bitdeer Technologies Group (NASDAQ:BTDR), attractive revenue can coexist with weak shareholder returns if equipment, operating, and financing costs are too high. Hardware depreciation and future replacement needs also matter, alongside customers’ ability to meet payment obligations.

Meeting the November 2026 data-center readiness target and beginning revenue recognition in the first quarter of 2027 would resolve important execution questions. Sustained margins and cash generation would establish the financial case.

Hedge Fund Sentiment

The filings available so far reflect positions held before Bitdeer Technologies Group (NASDAQ:BTDR) reported its August 2026 production and operations update. Insider Monkey’s database showed 62 hedge funds holding Bitdeer Technologies Group (NASDAQ:BTDR) at the end of 2Q2026, up from 40 funds three months earlier.

Conclusion

Bitdeer Technologies Group (NASDAQ:BTDR) has reduced demand uncertainty at A102, strengthening the case for its AI expansion. Timely commissioning, disclosed funding requirements, and recognized revenue are the next tests. The ultimate measure will be cash generated after operating costs, financing, and equipment investment, rather than the contract headline alone.

While we acknowledge the potential of BTDR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Korn Ferry (KFY) Grew Contracted Fees 14%. Can AMS Add Growth Without Squeezing Margins? and Mastercard (MA) Partners With Flowcart. Can In-Chat Payments Deliver Profitable Growth?

This article is originally published at Insider Monkey.

As restaurant chains increasingly turn to specialty beverages to attract customers beyond the traditional meal, Sonic Drive-In believes a business model built around drink customization gives it a head start.

Marion Campbell, Sonic’s vice president of integrated marketing and communications, told FOX Business that the quick-service restaurant industry is still figuring out how to make specialty beverages a bigger part of its business, while Sonic has spent years building customization into its operations.

“I think that the market is just getting started. And QSR in particular is just figuring out a way to serve these types of beverages to their guests and make it a pivotal part of their DNA. It’s already a part of our DNA,” Campbell said.

Customers in their vehicles wait for their orders at a Sonic restaurant drive-in on April 17, 2024, in Miami, Florida. (Joe Raedle/Getty Images)

The competition for beverage customers comes as restaurant brands experiment with specialty drinks, customization and limited-time flavors to give consumers additional reasons to visit. Rival fast-food chains McDonald’s, Taco Bell and Jack in the Box each offer their own versions of dirty sodas.

The nonalcoholic beverage market generated $264.1 billion in consumer spending at U.S. foodservice establishments in 2025, accounting for 23% of industry-wide sales, according to data from Technomic. The data also showed that cold beverage spending in 2025 climbed 3.4%, compared with a 1.2% rise for hot beverages, with Technomic saying that “innovation and consumer preference are driving cold beverages to the forefront of market growth.”

KRAFT HEINZ UNVEILS NEW PHILADELPHIA CREAM CHEESE FLAVORS TO WIN BACK SHOPPERS

For Sonic – which operates more than 3,400 restaurants and generates $5.2 billion in annual system sales – drinks can bring customers through its drive-ins even when they aren’t looking for a burger, hot dog or other full meal.

“A beverage-only guest is a very frequent guest. So beverage is always going to play a pivotal role because of the frequency it drives for the business versus just a check driver,” Campbell said.

She added that beverages can also increase how much a customer purchases when paired with food.

Sonic’s seasonal beverage lineup featured in the chain’s “Hotumn” campaign highlighting customizable fall-inspired drinks. (Sonic)

The company’s customization infrastructure has also allowed the chain to capitalize on the popularity of dirty sodas, which typically combine soda with additions such as cream and flavored syrups.

The dirty soda trend has exploded over the past two years, with case volume at quick-service restaurants jumping 318% during that time, according to data from market research firm Circana.

MAJOR BURGER CHAIN IN-N-OUT CHANGES TWO KEY INGREDIENTS, SENDING FANS INTO A FRENZY

“I think dirty sodas is a place we’ve actually played long before they were really deemed dirty sodas,” Campbell said.

Campbell said Sonic was positioned to capitalize on the trend because customers were already accustomed to customizing drinks at its restaurants.

The chain is now using that platform to experiment with new flavors and seasonal products, including its recently launched fall-inspired lineup and banana-flavored offerings.

CHECKERS & RALLY’S CEO SAYS AMERICANS’ DEMAND FOR FAST-FOOD VALUE IS ‘INTENSIFYING’

Sonic Drive-In has over 3,400 restaurant locations in 47 states. (iStock)

The strategy comes as consumers remain sensitive to restaurant prices, forcing chains to balance novelty and indulgence with value.

Campbell said beverage pricing can vary widely, from an everyday carbonated soft drink to more elaborate specialty offerings, and argued that consumers can be willing to spend more for an experience they consider distinctive.

Sonic’s latest seasonal marketing push also illustrates how the company is trying to translate beverage experimentation into customer traffic.

DUNKIN’ OPENED ITS FIRST-EVER DOG DRIVE-THRU WITH TREATS AND TOYS FOR PUPS ON NATIONAL DOG DAY

Sonic Drive-In serves burgers, hot dogs, fries, shakes and specialty drinks. (iStock)

The chain created a campaign around “Hotumn,” its name for the period when consumers begin embracing fall flavors and clothing even as temperatures remain hot, particularly in Sonic’s core Southern markets. The campaign is scheduled to run for about four weeks.

Looking further ahead, Campbell expects customers’ appetite for personalization to continue shaping the beverage business.

“Again, customization’s not going anywhere. It’s been here forever. People like to be in control of the flavors they consume. They like to feel like they’re the creator, and they have that ability,” Campbell said.

She also pointed to flavored water as an area with room for additional experimentation as consumers look for customizable beverages beyond traditional soft drinks.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Sonic has more beverage concepts in development, according to Campbell, although she declined to disclose what the company plans to introduce next.

Quick Read

• A traditional IRA balance overstates true wealth because every withdrawal is taxed as ordinary income, meaning the government owns a portion of every dollar on the statement.

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• Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.

Two brothers, same starting balance of $450,000 in a traditional IRA, same age, same market. Imagine that one spent a decade moving $40,000 a year into a Roth, paying tax on each conversion at the 12% federal rate. The other brother did nothing and watched the balance climb to $730,000. On paper, the second brother looks like he came out ahead. In practice, he owns less of what his statement says than his brother owns of a smaller one.

Why the Statement Includes the Government’s Share

A traditional IRA balance is money on which no federal income tax has ever been paid. Every dollar withdrawn is taxed as ordinary income in the year it comes out. If the eventual tax rate is 22%, then twenty-two cents of every dollar on that statement belong to the Treasury. The account holder is a custodian for a share he does not own.

A Roth statement works differently. Tax has already been settled. Qualified withdrawals in retirement come out untaxed. The number on the page is the number the owner can spend. Two brothers whose statements read the same figure do not have the same wealth if one is a Roth and the other is pre-tax. Almost no one adjusts for this when deciding whether they have enough saved.

The 4% Rule is Broken, Built On A World That No Longer Exists

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Story Continues

On groceries, Amazon employees will get 10% off eligible fresh groceries and everyday essentials on Amazon.com and Whole Foods Market online, and 20% off in-store at Whole Foods Market, according to Amazon. The discount is uncapped and can be stacked with existing Prime member discounts.

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Amazon already offers full-time employees free Prime membership, prepaid education up to $5,250 annually through its Career Choice program, health-care coverage from day one, a 401(k) with company match and paid parental leave.

How workers are reacting to the news

The reaction among some Amazon workers has been mixed. On a Reddit forum for Amazon employees, several comments questioned whether the Whole Foods grocery discount would amount to meaningful savings in practice, given the chain’s reputation for higher prices than typical grocery stores. One commenter said the 20% discount might bring Whole Foods prices roughly in line with a regular supermarket.

The wage increase shows up in every paycheck. The Whole Foods discount only helps workers who actually shop there. Many Amazon fulfillment-center employees are in suburban and rural areas where Whole Foods locations are sparse. A 20% discount on a grocery chain that runs 30% to 40% above average market prices still leaves workers paying more than they would at a standard supermarket.

Yahoo Finance reported the Reddit comments were highlighted by Amazon itself in materials it shared with media, framing the employee skepticism as good-natured.

The banking benefit drew a more positive response. Access to a federally insured credit union with lifetime membership is a tangible financial tool, particularly for workers who are unbanked or underbanked. About 4.2% of U.S. households have no bank account, according to the FDIC, and a larger share use high-fee check-cashing or payday lending services. A credit union membership with low fees and competitive rates addresses a real gap for that group.

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What this means for Amazon and its workforce

Hourly workers have more options than they did five years ago. Walmart’s average U.S. frontline associate wage now tops $18 an hour, according to Walmart. Target, Costco and other large retailers have done the same. Amazon warehouse jobs have a reputation for fast pace and physical demand, so the pay premium has to justify that to workers who could go elsewhere.

The company has also faced years of criticism over warehouse working conditions, injury rates and worker organizing efforts. Higher pay addresses one dimension of employee concerns but does not resolve questions about workload, pace of work or scheduling flexibility that have driven some of the tension between Amazon and its workers.

For investors, the $1.5 billion figure is worth context. Amazon generated more than $100 billion in operating cash flow in its most recent fiscal year, according to Yahoo Finance. The wage investment is meaningful for the workers receiving it, but manageable at the company’s scale.

Labor costs are one of the largest line items in Amazon’s operations. The company has been investing heavily in robotics and automation across its fulfillment network, partly to offset rising labor expenses over time. Higher wages make the automation investment look more attractive from a cost standpoint, since it raises the threshold at which machines become cheaper than people. Amazon will report how labor costs are trending when it releases its next quarterly earnings results.

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Related: Kroger has a problem Walmart and Amazon will never have

This story was originally published by TheStreet on Sep 20, 2026, where it first appeared in the Employment section. Add TheStreet as a Preferred Source by clicking here.

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