ByteDance compute supplier DayOne files for a Nasdaq IPO

DayOne, a Singapore-based data center operator and a core compute supplier to ByteDance, has filed an IPO prospectus with the U.S. Securities and Exchange Commission, planning to list on Nasdaq. According to Reuters, the company aims to raise up to $5 billion at a target valuation of around $20 billion, roughly CNY 133.4 billion. DayOne was spun out of the overseas business of GDS Holdings, a leading Chinese data center firm, and has been operating independently for less than two years. ByteDance alone accounts for nearly 70% of its revenue, with Oracle as the second-largest customer, and its shareholders include Hillhouse, Coatue Management, and the SoftBank Vision Fund.

On the financial side, DayOne reported full-year revenue of $178 million in 2024, which grew to $484 million in 2025, up 171.9% year over year. In H1 2026, revenue reached $512 million, a 238% increase, meaning half-year revenue already exceeded the full-year figure for 2025. Over the same period, adjusted EBITDA margin improved from 32.3% to 40.2%. However, reported losses have widened: net loss in H1 2026 stood at $77.2 million, more than five times the $12.6 million recorded in the prior-year period. The company attributes the loss mainly to share-based compensation costs, which reached $342 million in 2025 alone. Data center construction is a capital-intensive business: in H1 2026, DayOne's capital expenditure on fixed assets, land use rights, and construction prepayments reached $3.11 billion, more than six times its revenue for the period, while net cash flow from operating activities was only $14.01 million. As of the end of June 2026, total assets were $12.836 billion. The company is currently in the stage of having filed its prospectus and preparing for its U.S. listing.