Outside Source
Bitdeer has made a step toward becoming a fully integrated Bitcoin mining company with a recent $21 million land acquisition in Canada.
The company revealed on Tuesday that it has obtained a fully licensed power project on a 19-acre site near Fox Creek, Alberta, from Kiwetinohk Energy.
Costs and Deadline Expectations
According to a press release, this purchase allows Bitdeer to build an on-site natural gas power plant, with approval for a 99 MW connection to the Alberta Electric System Operator (AESO) grid. The company will also build a data center on the site specifically for Bitcoin mining.
With plans to have it fully operational by Q4 2026, the move is part of a broader strategy to become the first truly vertically integrated Bitcoin miner. This will give the Singapore-based company control over its own ASIC chips, data center infrastructure, and power generation.
Purchasing the land and permits cost $21.7 million in cash, with additional investment required for the power plant and data center. The firm estimates that the plant will require an additional $90 million, while the data center will cost another $30 million, or $300,000 per megawatt.
As of December 2024, it managed 21.7 EH/s of hashing power, including 8.9 EH/s of proprietary hashrate and 12.8 EH/s of hosted hashrate for clients.
Strategic Benefits
Once the initiative is operational, Bitdeer aims to achieve the lowest Bitcoin mining production costs ever seen in the industry.
Key benefits of the full vertical integration will include low power costs, estimated at $20 to $25 per MWh, improved sustainability with a reduced carbon footprint, and energy cost optimization achieved by selling excess power back to the Alberta grid during periods of high demand.
“We are really excited about planting roots in Alberta,” said the BTC miner’s Chief Strategy Officer Haris Basit. “By combining our own power generation, SEALMINER mining machines, and opportunistic grid participation, we believe this site will set a new benchmark for industry unit economics,” he added.
Beyond mining, Bitdeer has also been actively purchasing Bitcoin. In its latest update, it revealed that it has increased its holdings to 787 BTC following a recent addition of 50 BTC worth $4.74 million.
The company also reported a 131% rise in its stock value in 2024, benefiting from Bitcoin’s rally despite the general decline in the stock prices of other crypto mining firms.
This article first appeared at CryptoPotato
