Bitdeer's $121M Alberta Bet: Power Plant, Data Center, and Bitcoin Mining Integration

Bitdeer, a Bitcoin mining company founded by Jihan Wu, has made a significant investment in Alberta, Canada, by acquiring a 101 MW gas power plant. The company plans to build a 99 MW Bitcoin mining data center on the 19-acre site near Fox Creek, Alberta, which it purchased for $21.7 million. The acquisition includes a site permit for a 101 MW power plant.

The construction of the natural gas power plant is estimated to cost an additional $90 million, while the investment in the data center is projected to be around $30 million. This strategic move aligns with Bitdeer's goal of becoming a fully integrated mining firm, managing its own infrastructure, power generation, and ASIC chips for efficient Bitcoin mining operations.

Haris Basit, chief strategy officer at Bitdeer, expressed excitement about the acquisition, stating, "We are really excited about planting roots in Alberta, our first site in Canada. This acquisition is the culmination of extensive collaboration with multiple government agencies and the Canadian Blockchain Consortium. It marks a significant step in our strategy to become the first fully-vertically integrated Bitcoin miner, giving us unmatched control over costs, energy efficiency, and scalability."

The site has the capacity to scale up to 1 GW and is licensed for a 99 MW interconnect to the local power grid. Bitdeer plans to sell power back to the Alberta grid during periods of high demand, stabilizing prices. The energy production costs for the facility are expected to be between $20 to $25 per MW/h.

Bitdeer aims to commence site preparation and initial infrastructure development in Q2 2025, with the goal of having the facility fully operational by Q4 2026. The company believes that this site will set a new benchmark for industry unit economics by combining its own power generation, SEALMINER mining machines, and opportunistic grid participation.