Bitdeer has made a significant step to boost its position in the Bitcoin mining sector, purchasing a 101-megawatt gas-powered plant in Alberta, Canada. This acquisition is consistent with the company’s strategy to become a completely vertically integrated Bitcoin miner, allowing it to handle all parts of its mining operations, from power generation to data center infrastructure.
The $21.7 million purchase includes a gas-fired power plant, giving Bitdeer the capacity to mine Bitcoin at some of the industry’s lowest energy prices. The business also intends to develop a 99-megawatt data center on the site, with the option to expand to 1 gigawatt in the future. By combining its own power generation with proprietary mining rigs and participating in the local power grid at peak demand, Bitdeer hopes to set new norms for energy efficiency and cost control in the Bitcoin mining industry.
Despite these lofty goals, Bitdeer’s stock has experienced numerous hurdles. Its shares have fallen 27.5% in the last month, with a noteworthy dip of 4.95% on February 4, despite rising broader market indexes. Investor sentiment has shifted negative, with short interest in the company rising as daily trade volumes continue to fall.
This acquisition occurs at a time when the cryptocurrency mining sector is under increased competition and pressure due to slower hardware rollouts and changing market conditions. The decline in Bitcoin mining payouts owing to the 2024 halving has exacerbated the hurdles for mining companies, forcing some, including BitDeer, to diversify into other industries, such as artificial intelligence.
With development on the Alberta site set to commence in the second quarter of 2025 and projected to be completely operational by the fourth quarter of 2026, Bitdeer’s long-term plan focuses on gaining greater control over its operations and minimizing its dependency on third-party infrastructure. However, its recent stock performance, as well as the overall volatility in the crypto mining sector, calls into doubt the company’s capacity to effectively handle these obstacles.
