Bitdeer advances vertical integration with Alberta site

SINGAPORE - Bitdeer Technologies Group (NASDAQ: BTDR), a global leader in blockchain and high-performance computing, has announced the acquisition of a 101 MW site and gas-fired power plant project in Alberta, Canada. This strategic move is aimed at establishing the industry’s first fully vertically-integrated Bitcoin mining operation. The company, currently valued at $2.3 billion, has shown strong momentum with a 71% return over the past year, according to InvestingPro data.

The company’s January 2025 operational update revealed a self-mined Bitcoin count of 126, a decrease from the previous month, attributed to seasonal electricity price hikes at their Bhutan site. Despite a 6.4 magnitude earthquake in Taiwan on January 21, 2025, which introduced a one-month delay, production of the SEALMINER A2 mining rigs is progressing, with 29,000 units expected to commence shipment from March through Q2 2025. InvestingPro analysis reveals that while Bitdeer holds more cash than debt on its balance sheet, the company is currently experiencing rapid cash burn, which could impact future operations. Get access to 12 more exclusive ProTips and comprehensive financial analysis with InvestingPro.

Bitdeer’s SEALMINER A1 mass production is slated to complete by early March, with the A2 air-cooled trial rigs already delivered and functioning well in datacenters. The SEALMINER A3 chip, boasting an anticipated efficiency of 10 J/TH, is expected to produce initial sample wafers in Q1 2025, while the SEALMINER A4’s development, targeting an efficiency of 5 J/TH, is on schedule for an initial tape-out in Q3 2025.

The U.S. Department of Commerce’s Bureau of Industry and Security issued new rules for advanced computing integrated circuits in January 2025. Bitdeer has preliminarily determined that these rules will not impact the delivery of SEAL chips, as the companies involved in their assembly and testing are approved under the regulations.

Bitdeer’s AI Cloud, leveraging NVIDIA (NASDAQ:NVDA) DGX SuperPOD with H100, saw a dip in average utilization to about 60% in January due to a pivot towards R&D. The company is set to deploy open-source models and optimize platform services.

Infrastructure updates include the completion of a 40 MW expansion in Tydal, Norway, and the ongoing 100 MW hydro-cooling conversion in Rockdale, Texas, expected to be energized in phases by March 2025. Other projects, such as the 500 MW construction in Bhutan and the 101 MW Alberta site, are progressing with significant milestones expected in the coming years.

Bitdeer secured a $17M supply chain financing facility with a Singapore financial institution in January, with a 10.2% interest rate, to support these endeavors. The company maintains a healthy current ratio of 9.44, with liquid assets well exceeding short-term obligations. However, InvestingPro’s detailed analysis indicates the stock is currently trading above its Fair Value, with an EV/EBITDA ratio of 1,399x suggesting a premium valuation. Dive deeper into Bitdeer’s financial health and access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

According to Matt Kong, Chief Business Officer of Bitdeer, the Alberta acquisition represents a critical step towards becoming a fully-vertically integrated Bitcoin miner. He also highlighted the company’s ASICs roadmap, with SEALMINER A1s on schedule and A2s slightly delayed but still advancing.

This article is based on a press release statement from Bitdeer Technologies Group.

In other recent news, Bitdeer Technologies Group has been the focus of multiple analyst updates and significant operational developments. Benchmark and Rosenblatt Securities have both maintained their Buy ratings on Bitdeer stock, with price targets of $29.00 and $30.00 respectively. The analysts’ optimism stems from Bitdeer’s strategic expansion into various aspects of the cryptocurrency sector, including the construction of AI/HPC data centers and the development of ASIC bitcoin mining rigs.

Similarly, Needham analysts have expressed confidence in Bitdeer’s High-Performance Computing (HPC) opportunities, maintaining a Buy rating and raising their price target to $22. This follows revised projections for the company’s machine manufacturing sales, which are expected to contribute significantly to Bitdeer’s future earnings.

In addition to these analyst updates, Bitdeer has also announced the acquisition of a 101-megawatt power project in Alberta, Canada, marking a significant expansion of its operations. This move aligns with Bitdeer’s strategy to become the world’s first fully-vertically integrated Bitcoin miner at scale.

Lastly, Bitdeer’s December 2024 Production and Operations update highlighted significant progress in their operations, including the self-mining of 145 Bitcoins and an increase in their total managed hash rate. These recent developments underscore Bitdeer’s commitment to growth and innovation within the cryptocurrency sector.

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