Bitdeer Expands with 101-Megawatt Canada Acquisition Amid Stock Struggles

Bitdeer, a prominent crypto mining company based in Singapore, has acquired a 101-megawatt site and a gas-fired power project in Alberta, Canada, marking a significant step in its strategy to become a fully vertically integrated Bitcoin miner. The move, which includes control over land, power generation, electrical and data center infrastructure, as well as its Sealminer A3 mining rigs, is designed to give Bitdeer greater control over its Bitcoin mining operations.

The goal of achieving vertical integration means that Bitdeer will no longer depend on third parties for crucial components such as infrastructure and power services. Instead, the company aims to manage all key aspects of its operations, from power generation to mining hardware, which could improve energy efficiency, scalability, and cost control.

Haris Basit, Bitdeer's Chief Strategy Officer, emphasized the importance of this acquisition, stating, "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."

Expanding Footprint but Facing Stock Challenges

Despite the strategic acquisition and growing global presence, Bitdeer’s stock performance has been under pressure. The company went public in April 2023 via a merger with blank-check company Blue Safari Acquisition, which valued the firm at $1.18 billion. However, its stock has struggled, with shares falling by 27.5% in the past month. On February 4, Bitdeer’s stock dropped by 4.95%, defying the positive performance of broader market indexes and the gains seen by rival crypto mining companies such as CleanSpark, Riot Platforms, and Terawulf.

Investor sentiment around Bitdeer is also weakening. Short interest in the company surged from less than 10 million shares in late November 2024 to 13.7 million by mid-January 2025, while average daily trading volume has continued to decline.

Challenges in the Bitcoin Mining Sector

Bitdeer’s expansion comes at a time when the crypto mining industry is facing significant challenges. One factor is a slower pace of new mining hardware rollouts, which has led to a decrease in Bitcoin mining difficulty. On January 27, 2025, the difficulty dropped to 108.1 trillion, the first reduction of the year. Additionally, Bitcoin miners experienced a 50% pay cut in 2024 due to the halving event, which reduced Bitcoin rewards for verifying transactions from 6.25 BTC to 3.125 BTC per block.

While many mining companies, including Bitdeer, have sought diversification into other sectors, such as AI, the impact of AI-related market dynamics is also influencing investor sentiment. Recent developments surrounding DeepSeek, a China-based AI model that competes with OpenAI, raised questions about the cost-efficiency of AI development and hardware reliance. DeepSeek’s rise in popularity, including a strong showing in Apple’s App Store, has affected both the AI and crypto mining sectors, as it operates at significantly lower costs than its rivals.

Financial Performance Struggles

Financially, Bitdeer’s performance has shown signs of strain. In the third quarter of 2024, the company reported a gross profit of $2.8 million, a sharp decline from $21.1 million during the same period in 2023. This decline highlights the challenges facing Bitcoin miners as they navigate lower rewards, higher competition, and increased market volatility.

Despite these difficulties, Bitdeer remains focused on expanding its operations, particularly with its recent push for vertical integration. As the company navigates both the challenges in the crypto mining space and the broader market environment, its ability to maintain growth and profitability will depend on the success of its strategic moves and the stability of Bitcoin prices.

In conclusion, while Bitdeer’s acquisition of a significant Canadian site signals its ambitious plans to dominate the Bitcoin mining industry, the company faces ongoing pressure in both its stock performance and the larger competitive landscape of crypto and AI markets. Only time will tell if its vertical integration strategy will provide the stability and profitability it seeks.