Bitdeer Expands Power Capacity with Strategic Ohio Land Deal Amid AI and HPC Growth

Bitdeer Technologies (NASDAQ: BTDR) has strategically positioned itself to meet the increasing demands of Bitcoin mining and high-performance computing (HPC) by securing a new 570-MW power agreement in Ohio. This partnership with Ohio's Monroe County Port Authority (MCPA) will enable the company to expand its computing power and address the energy-intensive needs of modern applications.

The agreement, which includes a 30-year lease for a facility in Clarington, Ohio, grants Bitdeer access to a power facility previously used for aluminum production. The location offers a cooler climate conducive to Bitcoin mining, thus maximizing computing efficiency. This strategic move increases Bitdeer's total infrastructure development pipeline to 2.5 GW globally.

The new facility will provide Bitdeer with up to 570 MW of additional power capacity, leveraging existing infrastructure such as utility switchyards and transmission lines. The initial 266 MW of power is expected to be available by Q3 2025, with the remainder under review for integration into the regional transmission planning process. This expansion could also facilitate broader partnerships amid the rising demand for electricity to support generative artificial intelligence (AI) and machine learning applications.

Bitdeer's platform supports a range of applications, including Bitcoin mining, HPC, and AI, enabling users to process data quickly and efficiently. The company, led by Jihan Wu, an early innovator in ASIC development, recently introduced SEAL01, Bitdeer's first chip designed to enhance Bitcoin mining efficiency.

Linghui Kong, Bitdeer’s Chief Business Officer, highlighted the significance of the Hannibal Industrial Park's location, noting that the ready-to-use infrastructure significantly expands the company's power capacity and supports its growth ambitions in Bitcoin mining, HPC, and AI.

The Monroe County Economic Development Committee expressed enthusiasm about Bitdeer joining the community. Taylor Stepp, Ernst & Young’s Investment, Credits, and Incentives Manager, also lauded the partnership, acknowledging the hard work that facilitated the agreement.

Monroe County has been leveraging opportunity zones to attract high-tech data centers for several years. The state of Ohio has also made significant progress in green energy initiatives, such as the partnership between the University of Dayton and utility AES Ohio for a waste-to-heat renewable power project.

Bitdeer operates six Bitcoin mining facilities worldwide, with a total electricity capacity of 895 MW as of Q1 2024. Following the announcement of the Ohio partnership, Bitdeer's stock saw an uptick.

Wall Street analysts have shown increased interest in Bitdeer, with Roth MKM analyst Darren Aftahi reaffirming a “buy” rating on the stock and setting a $14 price target. Other analysts from Benchmark, BTIG Research, and HC Wainwright have also issued “buy” ratings in recent months.

With market predictions suggesting a new all-time high for Bitcoin prices this year, Bitdeer’s expanded power capacity and innovative chip development position the company to support the next wave of growth and technological advancements in the blockchain space.

Bitdeer's strategic initiatives and expanding infrastructure could significantly impact the Bitcoin mining industry and the broader tech landscape, particularly in AI and HPC applications.

Featured photo by geralt on Pixabay.

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