Bitdeer Buys 101 MW Power Plant in Canada for $21.7M

Bitcoin mining firm Bitdeer has announced the acquisition of a 101 MW power plant in Canada for $21.7 million. The site, located near Fox Creek, Alberta, is fully licensed and includes permits for the construction of an on-site natural gas power plant. Bitdeer has also received approval to build a 99 MW interconnection grid with Alberta Electric System Operator, worth around $30 million or $300,000 per MW.

The power plant is projected to have an energy production cost of around $20 to $25 per MWh, based on current gas prices. Bitdeer plans to develop and build the power plant in partnership with an Engineering, Procurement and Construction (EPC) company, with an expected completion date of the fourth quarter of 2026. Once the site is developed, Bitdeer will be able to deploy 9 EH/s of its SEALMINER A3 mining machines.

Bitdeer also plans to sell power back to the Alberta grid during high demand periods to stabilize gas prices and optimize operational costs. This marks Bitdeer's first site acquisition in Canada, following previous acquisitions in the U.S., Bhutan, and Norway. The company aims to become the first fully-vertically integrated Bitcoin miner, gaining unmatched control over costs, energy efficiency, and scalability.

As part of the deal, Bitdeer will deploy a carbon utilization system that captures CO2 on the site, making it a net zero carbon producer project. This is intended to offset Canada's carbon tax and potentially generate revenue through carbon credits. The Premier of Alberta, Danielle Smith, welcomed the Bitcoin mining project and encouraged other firms to come to Alberta if they have a plan to bring their own power.

According to analysts, Bitcoin miners experienced significant growth in the last quarter of 2024 after Bitcoin crossed $100,000 for the first time. The rise of Bitcoin prices subsequently raised mining activity, with BTC production increasing by 16.4% on a quarter-over-quarter basis and transaction fees surging by 59.4%.