Bitdeer Announces Mining Expansion with SEALMINER Mining Machines
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The announcement by Bitdeer Technologies Group regarding its hash rate expansion plan represents a strategic move to bolster its self-mining capabilities. The planned increase from 8.4 EH/s to an estimated 11.8 EH/s, followed by a projected total hash rate exceeding 46 EH/s by the end of 2025, signifies a substantial growth trajectory for the company. This expansion is aligned with the broader industry trend of scaling operations to maintain competitiveness in the blockchain and high-performance computing sector.
Investors should note the potential for increased operational efficiency and reduced costs per unit of mining power. The use of the company's SEALMINER A1 miners, equipped with the SEAL01 chip, is expected to enhance fleet efficiency and provide a competitive edge in terms of power consumption. However, the capital expenditure required for such expansions and the retirement of older rigs could impact short-term profitability. Additionally, the reliance on the success of the SEALMINER A1's performance post-deployment is a variable that warrants attention.
Bitdeer's approach to funding its expansion plans through cloud hash rate and cloud hosting presents an innovative financing strategy. This could potentially alleviate the financial burden on the company's balance sheet, although it may introduce revenue-sharing components that could affect long-term profitability. Investors should consider the implications of not including the total new mining power on the balance sheet, as it might obscure the company's actual asset base and financial health.
The projected increase in proprietary hash rate and subsequent expansions hint at an optimistic revenue outlook. However, the cryptocurrency mining industry is subject to high volatility, regulatory changes and market demand fluctuations, which could impact the return on investment for such expansions. It is essential to monitor the market's reception of the SEALMINER A1 and the actual performance metrics once operational.
Bitdeer's expansion plan and the introduction of the SEALMINER A1 miners showcase a commitment to innovation within the cryptocurrency mining hardware market. The SEAL01 chip's touted power efficiency could be a game-changer, potentially reducing electricity costs, which are one of the most significant expenses in mining operations. The strategic decision to field test the mining rigs in their own data centers before selling to customers could serve as a strong marketing point, reassuring potential buyers of the product's reliability and performance.
However, the success of this plan is heavily dependent on the cryptocurrency market's stability and the future value of mined assets. The company's growth is tied to the performance of digital currencies, which are known for their price volatility. As such, while the expansion may position Bitdeer favorably in terms of infrastructure, the actual financial benefits will be closely tied to market conditions beyond the company's control.
SINGAPORE, March 26, 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 a hash rate expansion plan of approximately 3.4 EH/s as a first step in a plan to expand its self-mining.
The Company intends to install its own recently announced SEALMINER A1 miners at its mining datacenters in Rockdale, Texas in the United States; and, Norway in Q3 and Q4 2024 to accomplish this initial 3.4 EH/s expansion. Bitdeer will add approximately 4.8 EH/s of hash rate and retire 1.4 EH/s of older mining rigs. This expansion is expected to grow the total proprietary hash rate from 8.4 EH/s to approximately 11.8 EH/s.
Several similar expansions for its mining hash rate are expected to follow in subsequent quarters until the end of 2025. The Company estimates that it will feasibly add 30 – 40 EH/s in its mining datacenters to be operational in 2025 and replace an estimated 7 EH/s of existing generation mining rigs with newer generation ones. This will result in an estimated 23 EH/s of hash rate addition within existing and under-construction datacenters. Bitdeer may not include the total new mining power as part of the Company’s balance sheet, as it may seek cloud hash rate, cloud hosting and other ways to fund expansion plans. The total hash rate under management as of the end of 2025 may exceed 46 EH/s.
Linghui Kong, Chief Business Officer of Bitdeer, commented, “We expect our fleet efficiency to greatly improve by using our own miners. We have full faith in the capability of the SEALMINER A1 and are demonstrating this trust by installing it in volume at our own facilities first. We can ensure the quality of our products sold to customers by field testing the mining rigs first in our mining datacenters.”
The SEALMINER A1 is powered by the SEAL01 chip, one of the most power-efficient mining chips in the market today. After announcing the chip, the team continues to work on mass production according to plan.
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, formerly known as Twitter, @ BitdeerOfficial, Facebook @Bitdeer, 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.
Media Inquiries
pr@Bitdeer.com
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 expansion plan did Bitdeer Technologies Group announce?
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