Bitdeer Announces March 2024 Operations Updates
- Bitdeer plans to expand its self-mining hash rate by 3.4 EH/s by the end of 2024.
- The company mined 294 Bitcoins in March, a 2.4% increase from the previous month.
- Bitdeer secured a competitive electricity price of $0.0425 per kWh for its Gedu datacenter.
- Construction is underway for a 500MW datacenter in Jigmeling, Bhutan, and progress continues on datacenters in Ohio, United States, and Tydal, Norway.
- The Company is converting a portion of cryptocurrencies into fiat currency to support operations while retaining the rest for potential value appreciation.
- Bitdeer has committed orders for wafers from Taiwan Semiconductor Manufacturing Company to produce mining machines worth approximately US$60 million.
- Recent developments include an initial hash rate expansion plan and successful deployment of the NVIDIA DGX SuperPOD H100 system.
- Bitdeer will be attending Token 2049 in Dubai and sponsoring the 2024 Bitcoin Halving Special event.
- None.
Insights
The expansion of Bitdeer's self-mining hash rate by 3.4 EH/s is a strategic move that could significantly bolster the company's mining capacity and operational efficiency. By deploying their SEALMINER A1 machines, they are not only enhancing control over their mining operations but also potentially reducing reliance on third-party suppliers. This move is likely to be viewed positively by investors, as it indicates proactive management and the potential for increased profitability, especially considering the 28.4% year-over-year increase in Bitcoin mined.
However, the capital expenditure for such an expansion and the ongoing construction of multiple datacenters must be weighed against the potential benefits. Investors should monitor the company's capital allocation and the impact of these investments on its cash flow. The commitment to convert a portion of cryptocurrencies into fiat currency is a prudent risk management strategy that may stabilize operational funding but could also limit upside potential if the cryptocurrency market rallies.
Bitdeer's announcement reflects a broader industry trend towards vertical integration and operational expansion within the blockchain and high-performance computing sectors. The company's increase in self-mining capacity and the construction of new datacenters position it to capitalize on the growing demand for cryptocurrency mining and AI cloud services. The early deployment of the NVIDIA DGX SuperPOD H100 system could provide a competitive edge in the AI cloud services market, potentially attracting new customers and partnerships.
The focus on energy costs, highlighted by the secured electricity price for the Gedu datacenter, is important for the long-term sustainability of mining operations. Bitdeer's emphasis on reducing electricity costs could improve profit margins and make its operations more resilient to fluctuations in cryptocurrency prices. Industry observers should note the strategic placement of datacenters in regions with favorable energy costs and regulatory environments, as this could influence the company's operational success and attractiveness to potential hosting clients.
Bitdeer's operations update indicates a significant emphasis on energy efficiency and cost management, which are pivotal in the cryptocurrency mining industry. The secured electricity rate of $0.0425 per kWh for the Gedu datacenter is competitive, particularly as energy costs can be a major operational expense in mining. This rate should aid in keeping the operational costs low, thereby potentially increasing the net profitability from mining activities.
The construction of the immersion cooling datacenter in Tydal, Norway, is another strategic move that may lead to enhanced energy efficiency and potentially lower cooling costs. Immersion cooling technology is becoming increasingly popular in datacenters due to its ability to efficiently manage heat generated by high-density computing. This could provide Bitdeer with operational advantages and may set a precedent for future datacenter developments within the industry.
SINGAPORE, April 04, 2024 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for blockchain and high-performance computing, today announced its unaudited mining and operations updates for March 2024.
Linghui Kong, Chief Business Officer of Bitdeer, commented, “During the month of March, we executed on our core operations and set the stage to drive the long-term growth of our business, most notably by announcing a plan to expand our self-mining hash rate by approximately 3.4 EH/s by the end of 2024. We intend to achieve this by installing our own SEALMINER A1 machines at our mining datacenters in Rockdale, Texas, U.S.A., and in Norway. Several similar expansions for our mining hash rate are expected to follow in subsequent quarters until the end of 2025.”
“We mined 294 Bitcoins in total during March, representing an increase of
“On the AI cloud service front, we completed the deployment and testing of our NVIDIA DGX SuperPOD H100 system. We successfully met our target deployment deadline, establishing ourselves as one of the first providers of the NVIDIA DGX SuperPOD H100 service within Asia. On the infrastructure front, we commenced construction during March of a 500MW datacenter in Jigmeling, Bhutan. At this stage, we have committed to the construction of a substation at the site and have begun ground leveling work, and we anticipate the site becoming operational around the middle of 2025. We also continued to make progress in the construction of our 221MW datacenter in Ohio, United States, and our 175MW immersion cooling datacenter at our mining facility in Tydal, Norway. Both the Ohio datacenter and the Tydal datacenter are expected to be completed by 2025.”
The Company primarily operates three distinct business lines:
- Self-mining refers to cryptocurrency mining for the Company’s own account, which allows it to directly capture the high appreciation potential of cryptocurrency.
- Hash Rate Sharing currently primarily includes Cloud Hash Rate, in which the Company offers hash rate subscription plans and shares mining income with customers under certain arrangements.
- Hosting encompasses a one-stop mining machine hosting solution including deployment, maintenance, and management services for efficient cryptocurrency mining.
Operations Update
| Metrics | March 2024 | February 2024 | March 2023 |
| Total hash rate under management1 (EH/s) | 22.5 | 22.0 | 18.3 |
| - Proprietary hash rate2 | 8.4 | 8.4 | 5.7 |
| • Self-mining | 6.7 | 6.7 | 3.9 |
| • Cloud Hash Rate | 1.7 | 1.7 | 1.8 |
| - Hosting | 14.1 | 13.6 | 12.6 |
| Mining machines under management | 226,000 | 222,000 | 196,000 |
| - Self-owned3 | 86,000 | 86,000 | 67,000 |
| - Hosted | 140,000 | 136,000 | 129,000 |
| Aggregate electrical capacity4 (MW) | 895 | 895 | 795 |
| Bitcoin mined (self-mining only)5 | 294 | 287 | 229 |
1 Total hash rate under management as of March 31, 2024 across the Company’s primary business lines: Self-mining, Cloud Hash Rate, and Hosting.
2 Proprietary hash rate as of March 31, 2024 was 8.4 EH/s, equivalent to proprietary hash rate as of February 29, 2024.
3 Self-owned mining machines are for the Company’s self-mining business and Cloud Hash Rate business.
4 Aggregate electrical capacity remained steady, totaling 895MW across six mining datacenters as of March 31, 2024.
5 Bitcoin mined in March 2024 increased by
Infrastructure Update
The Company has continued to make progress in the construction of a 175MW immersion cooling datacenter at its mining facility in Tydal, Norway (the “Tydal Datacenter”). The expansion of the Tydal Datacenter is expected to be completed in mid-2025.
The Company has continued to make progress in the construction of a 221MW datacenter in Ohio, United States (the “Ohio Datacenter”), with ground leveling expected to commence in April 2024. The land and power resources required for the Ohio Datacenter were secured during 2023. Construction of the Ohio Datacenter is expected to be completed in 2025.
The Company commenced construction of a 500MW datacenter in Jigmeling, Bhutan (the “Jigmeling Datacenter”) in March. Ground leveling work at the site has begun, and the Company has committed to the construction of a substation at the site. The Jigmeling Datacenter is expected to be completed around the middle of 2025.
Manufacturing Update
By March 31, 2024, the Company had committed orders for wafers from Taiwan Semiconductor Manufacturing Company that, once assembled in the third quarter, will generate approximately US
Recent Developments
On March 26, 2024, the Company announced an initial hash rate expansion plan of approximately 3.4 EH/s as a first step in its plan to expand its self-mining business line. Bitdeer intends to install its own SEALMINER A1 miners at its mining datacenters in Rockdale, Texas, United States, and in Norway by the end of 2024.
On March 18, 2024, the Company announced that it has completed the deployment and successful testing of its NVIDIA DGX SuperPOD H100 system ahead of schedule, becoming one of the first cloud service platforms in the Asian region to offer NVIDIA DGX SuperPOD H100 service.
Conference Schedule
The Company will be attending Token 2049 in Dubai from April 18-19, 2024.
The Company is sponsoring and attending the 2024 Bitcoin Halving Special hosted by Natalie Brunell of Coin Stories. Industry participants include Marathon Digital Holdings, CleanSpark, Terawulf, and Cipher Mining. Link to follow.
About Bitdeer Technologies Group
Bitdeer is a world-leading technology company for blockchain and high-performance computing. Bitdeer is committed to providing comprehensive computing solutions for its customers. The Company handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter design and construction, equipment management, and daily operations. The Company also offers advanced cloud capabilities to customers with high demand for artificial intelligence. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, visit https://ir.bitdeer.com/ or follow Bitdeer on X @ BitdeerOfficial and LinkedIn @ Bitdeer Group.
Investors and others should note that Bitdeer may announce material information using its website and/or on its accounts on social media platforms, including X, formerly known as Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages investors and others to review the information it posts on the social media and other communication channels listed on its website.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “look forward to,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in Bitdeer’s subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof. Bitdeer specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise. Readers should not rely upon the information on this page as current or accurate after its publication date.
Contacts
Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Bitdeer.ir@icrinc.com
Phone: +1 (212) 537-5825
Public Relations
Brad Burgess, SVP
ICR, LLC
Email: Bitdeer.pr@icrinc.com
Phone: +1 (212) 537-4056
FAQ
What is Bitdeer's (BTDR) plan for hash rate expansion by the end of 2024?
How many Bitcoins did Bitdeer mine in March 2024?
What electricity price did Bitdeer secure for its Gedu datacenter?
What construction progress has Bitdeer made for its datacenters?
How is Bitdeer managing cryptocurrencies obtained through its operations?
What manufacturing orders has Bitdeer placed with Taiwan Semiconductor Manufacturing Company?
What recent developments has Bitdeer announced?
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