A (relatively) simple solution would be to use something with more dense power source, maybe fuel. RC enthusiast use fueled engines routinely, it isn't something special. There are various types of advanced fueled engines for RC use from traditional 2-4 stroke miniaturized engines to turbofans.
They are not very common on small quadcopters because of lack of response. Quadcopters depend on an onboard controller for fast corrections and for this to work you need a motor that can react very fast and precisely. A liquid fuel engine in a craft that does frequent changes in direction of g forces is not an easy thing to control precisely.
But this could be easily remedied by making this at least partly hybrid (use engine to charge small battery and use this to power additional motors to improve response to help stability and maneuvers).
There are also non-hybrid quads, but again, none of them can deliver the performance observed by these pilots: https://www.mydronelab.com/blog/gas-powered-quadcopter.html
I said in another comment that my bet is on an RC plane. A fixed wing is much more likely to achieve that kind of speed with the endurance. Considering that the pilots didn't provide a good visual description I think it's the safest bet. I'm not going to worry about how it might be possible to make a quad that can do this when an obviously feasible solution is staring us in the face.
I never said you did.
But still. This still doesn't solve why it wasn't visible on thermal and would still be an extraordinary drone doing all these things.