Bitdeer Aims to Revolutionize Bitcoin Mining with 5 J/TH ASIC Chip

Bitdeer, a Singapore-based bitcoin mining firm, is set to revolutionize the bitcoin mining industry with its innovative approach to ASIC (Application-Specific Integrated Circuit) chip architecture. The company aims to enhance efficiency and transparency in the ASIC manufacturing process, which is currently dominated by Bitmain and MicroBT. These two companies control a significant portion of Bitcoin’s hashrate, making the market highly competitive and opaque.

Bitdeer’s new ASIC chip architecture promises a substantial leap in efficiency, potentially reaching single-digit efficiency ranges, which refers to mining rigs with less than 10 J/TH (joules per terahash). This breakthrough is crucial as the current most efficient machine, Bitmain’s Antminer S21XP Hydro, boasts 12 J/TH efficiency. Bitdeer’s SEALMINER A3, which still uses the traditional ASIC blueprint, has already achieved a power efficiency of 9.7 J/TH during performance trials. The upcoming SEALMINER A4, which will employ the firm’s new chip architecture, is expected to consume 5 J/TH, making it the most efficient ASIC machine on the market by a significant margin.

Bitdeer’s commitment to transparency is a significant departure from the current industry norm. The company plans to provide frequent updates on its manufacturing process, roadmap for new chip designs, and production cycles. This level of transparency is expected to help miners plan new hardware shipments and predict Bitcoin’s difficulty growth more accurately. Shanon Squires, chief mining officer at bitcoin hosting firm Compass Mining, praised Bitdeer’s efforts, stating that increased visibility into ASIC production would greatly benefit the mining industry.

The development of Bitdeer’s new chip architecture is led by Haris Basit, the company’s Chief Strategy Officer. Basit’s team includes engineers who were instrumental in creating Bitmain’s first ASIC chips back in 2014. The new architecture aims to recycle electric charge on a chip, allowing for high performance and significant efficiency improvements. This technology is not only applicable to ASICs but also to other digital chips, such as GPUs and signal processing chips.

Manufacturing ASICs is a complex and costly process. Bitdeer’s research team, divided between Singapore and Silicon Valley, works on new chip designs. The company spends approximately $6-8 million on research per quarter. Bitdeer has been delivering new products at a fast pace, with the SEALMINER A1 and A2 already released in 2024 and the A3 expected to enter mass production in the latter half of 2025. The A4 is anticipated to reach tape-out in the third quarter of 2025, with a release likely in late-2025 or early 2026.

Bitdeer’s partnership with TSMC, the world’s largest and most advanced chip manufacturer, is crucial for its success. The process of manufacturing ASICs involves submitting chip designs to TSMC, which then produces a mask and risk chips for trials. Once the design is finalized, TSMC mass-produces wafers, each containing hundreds of chips. Bitdeer’s A4 design is expected to simplify the chip allocation process by using a less demanding node, allowing the company to compete more effectively for TSMC’s resources.

Despite the high costs associated with ASIC production, Bitdeer recovers its funds quickly through customer deposits. Miners interested in purchasing Bitdeer’s ASICs typically put down a deposit of 25% to 50% of the total cost of the order. The production cycle averages six to seven months, enabling the company to make a profit relatively quickly. Additionally, Bitdeer’s own mining operations benefit from producing its ASICs, as it can reduce costs and sell excess mining rigs to other firms.

Bitdeer’s long-term goal is to challenge the dominance of Bitmain and MicroBT in the ASIC market. The company believes it has the team and technology to become the top player in the industry. By focusing on efficiency, transparency, and innovation, Bitdeer aims to disrupt the current duopoly and set new standards for the bitcoin mining industry.