Bitdeer snaps up 101-megawatt Canada site as stock tanks

Bitdeer Eyes Full Vertical Integration with Canada Acquisition Amid Struggling Stock Performance

Key Takeaways:

• Bitdeer has acquired a 101-megawatt site and gas-fired power project in Alberta, Canada, as part of its goal to become a vertically integrated Bitcoin miner.
• Vertical integration will give Bitdeer control over its Bitcoin mining infrastructure, including land, power generation, electrical and data center infrastructure, and mining rigs.
• Despite its global expansion, Bitdeer’s stock has faced a significant decline, dropping 27.5% over the past month.
• Mining companies, including Bitdeer, have diversified into AI to offset declining mining profits, following the 50% Bitcoin reward reduction in 2024.

Bitdeer’s Move Toward Vertical Integration

Bitdeer, a prominent crypto cloud mining company based in Singapore, has announced a significant acquisition in Alberta, Canada, with the purchase of a 101-megawatt site and a gas-fired power project. This acquisition is a crucial step in Bitdeer’s strategy to become the first fully vertically integrated Bitcoin miner. With the new facility, Bitdeer will have direct control over critical aspects of its Bitcoin mining operations, from land and power generation to electrical and data center infrastructure.

“We believe this acquisition represents a significant milestone in our journey to control all elements of our mining operations. This vertical integration gives us unparalleled control over costs, energy efficiency, and scalability,” stated Haris Basit, Bitdeer’s Chief Strategy Officer.

Bitdeer’s mining operations will now be powered by its own infrastructure and Sealminer A3 mining rigs, a move designed to enhance both profitability and sustainability.

Bitdeer’s Struggling Stock Performance

Despite this ambitious expansion, Bitdeer’s stock has been underperforming. Over the past month, Bitdeer’s shares have dropped 27.5%, including a 4.95% decline on February 4, a day when broader markets rallied. This contrasts with the performance of other crypto mining companies such as CleanSpark, Riot Platforms, and Terawulf, which saw gains during the same period.

Investor sentiment has become more negative, with short interest in Bitdeer rising from under 10 million shares in November to 13.7 million shares by January 15. Additionally, the company’s average daily trading volume continues to decline, indicating waning investor interest.

Industry and Market Challenges

Bitcoin mining competition is expected to ease somewhat, as mining hardware rollouts slow down. On January 27, Bitcoin mining difficulty decreased to 108.1 trillion, marking the first reduction of 2025.

Additionally, in 2024, Bitcoin miners faced a 50% reduction in earnings due to the Bitcoin halving, which cut block rewards for mining Bitcoin from 6.25 BTC to 3.125 BTC per block. This halving, along with the broader decline in mining profitability, has led some mining companies, including Bitdeer, to diversify into other sectors such as artificial intelligence (AI).

Bitdeer reported a significant drop in gross profit, which fell from $21.1 million in Q3 2023 to $2.8 million in the same period in 2024. The company’s struggles are compounded by a downturn in both the AI and mining industries, especially after DeepSeek, a Chinese AI model, rose to prominence by outperforming rivals at a much lower cost. This shift in the AI sector has shaken investor confidence and added downward pressure on mining stocks like Bitdeer.

Why Should People Start Mining?

Bitcoin mining can still be a profitable venture, especially as the mining difficulty and competition slow down in certain regions. By starting early and investing in the right mining equipment, miners can accumulate Bitcoin over time. Even in challenging market conditions, mining offers the potential for long-term gains, especially if miners focus on cost-effective mining setups and energy-efficient operations.

With mining equipment like ASIC miners and GPUs, miners can optimize their operations, reduce energy costs, and increase profitability. Moreover, diversifying into energy-efficient cryptocurrencies, such as those based on Proof of Stake (PoS), allows individuals to mine with lower environmental impact. Check out our recommended mining hardware options to get started!