Bitdeer Technologies Group, a leading Bitcoin mining company, is set to significantly expand its mining operations through a strategic 30-year lease agreement with the Monroe County Port Authority in Ohio.
This agreement, announced on June 28, marks a pivotal step for Bitdeer, allowing the company to enhance its global power capacity and strengthen its position in the Bitcoin mining industry.
The lease agreement involves a site at the Hannibal Industrial Park in Clarington, Ohio, a former aluminum processing facility equipped with the necessary power infrastructure to support large-scale mining operations.
This site will provide Bitdeer with an additional 570 megawatts of power capacity, boosting its total global power capacity to an impressive 2.5 gigawatts.
Linghui Kong, Bitdeer’s Chief Business Officer stated:
“The strategic location of the Hannibal Industrial Park, combined with its ready-to-use infrastructure, significantly expands our existing power capacity and supports our growth ambitions in Bitcoin mining and HPC and AI.”
Bitdeer CEO Matt Kong also commented on company’s ongoing operations, noting, “We buy cheaper machines and run them in our existing facilities with stable and cost-effective power purchase agreements.”
The 570 MW power capacity will be delivered in two phases.
The first phase, expected to be completed by the third quarter of 2025, will deliver 266 MW. The remaining 304 MW is under review and will be incorporated into the regional transmission planning process pending regulatory approval.
This phased approach allows Bitdeer to gradually scale up its operations while ensuring that all necessary infrastructure and regulatory requirements are met.
The Hannibal Industrial Park’s existing power infrastructure and utility switchyards are crucial in supporting these intensive computing operations.
Bitdeer’s expansion plans have garnered significant attention from the industry and investors alike. In May, stablecoin issuer Tether announced a $150 million investment in Bitdeer, acquiring over 18 million shares.
Related: Bitdeer to Expand Mining Operations in Bhutan, Raising $500 Million Investment
The company also has a warrant to purchase an additional 5 million shares at $10 per share. This financial backing underscores the confidence investors have in Bitdeer’s growth potential and operational strategy.
Following the announcement of the lease agreement, Bitdeer’s stock rose by 5%, trading at $10.26.
This positive market response reflects investor optimism about the company’s future prospects and its ability to leverage the new power capacity to enhance its mining operations.
The expansion comes at a time when the Bitcoin mining industry is facing significant challenges, including high energy costs, increased competition, and fluctuating bitcoin prices.
The Bitcoin halving in April 2024, which reduced the block reward to 3.125 bitcoin, has also raised concerns about miner profitability.
Despite these challenges, Bitdeer remains committed to expanding its mining capabilities and optimizing its operations.
The company’s strategic investments in power capacity and infrastructure are aimed at ensuring long-term sustainability and competitiveness in the industry.
Mark Palmer, an industry analyst, expressed confidence in Bitdeer’s operational efficiency, noting that the company has one of the lowest energy costs in the industry, averaging $0.04 per kilowatt-hour.
In addition to expanding its Bitcoin mining operations, Bitdeer is also focusing on diversifying its activities. The company plans to use the additional power capacity to support High-Performance Computing (HPC) and Artificial Intelligence (AI) operations.
This diversification strategy is designed to mitigate risks associated with the volatile bitcoin market and capitalize on the growing demand for computing power in various sectors.
The recent expansion in Ohio is a notable development in the Bitcoin mining industry, highlighting the company’s commitment to scaling its operations and enhancing its competitive edge.
This move is likely to influence other mining firms to explore similar opportunities for expansion and diversification.
In recent years, the Bitcoin mining industry has seen increased interest from institutional investors and large-scale operations. Companies like Bitdeer are leading the charge by securing strategic partnerships and investing in infrastructure to ensure sustainable growth.
