Bitdeer Secures Major Expansion for Bitcoin Mining Operations in Ohio

Bitdeer, the Bitcoin mining company founded by Chinese billionaire Jihan Wu in 2020, has significantly expanded its operational capacity in the United States through a strategic 30-year lease agreement with the Monroe County Port Authority. This move will provide Bitdeer with up to 570 megawatts (MW) of additional power capacity at the Hannibal Industrial Park in Clarington, Ohio, setting the stage for substantial growth in its mining activities, high-performance computing (HPC), and artificial intelligence (AI) applications.

The choice of Hannibal Industrial Park is pivotal for Bitdeer. This site, a former aluminum processing facility, comes equipped with robust infrastructure including utility switchyards and transmission capabilities ready to handle hyperscale loads. These features are ideal for supporting the intense energy demands of Bitcoin mining and high-performance computing operations.

“The strategic location of the Hannibal Industrial Park, combined with its ready-to-use infrastructure, significantly expands our existing power capacity and supports our growth ambitions in Bitcoin mining, and, HPC and AI.”

Linghui Kong, the Chief Business Officer at Bitdeer

This expansion is not just a boost for Bitdeer’s capacity but also signals a deepening commitment to advancing technology frontiers in lucrative fields like AI and blockchain.

Financial Implications for Bitdeer

While Bitdeer has kept financial specifics of the leasing deal under wraps, the market reacted positively to the news of this expansion. Following the announcement, Bitdeer’s shares (listed as BTDR on Nasdaq) saw a pre-market surge of 3.37%, reaching $10.11. This uptick is a clear indicator of the confidence investors place in Bitdeer’s strategic initiatives and its potential for future growth.

In May 2024, Bitdeer also fortified its financial position through a partnership with Tether. Tether acquired over 18.5 million Class A ordinary shares of Bitdeer and received a warrant to purchase up to an additional 5 million shares within a year. This deal injected Bitdeer with $100 million in gross profits, with the possibility of an extra $50 million should the additional shares be purchased. These funds are earmarked for various operational needs, including the development of ASIC-based mining rigs, data center expansion, and general business operations.

The operational rollout at the Hannibal Industrial Park is staged, with 266 MW of the total 570 MW expected to be online by the third quarter of 2025. The integration of the remaining 304 MW is still under review, pending formal incorporation into the regional transmission planning process. This phased approach allows Bitdeer to scale its operations efficiently while aligning with regional energy planning requirements.

The expansion into Ohio is a strategic move that positions Bitdeer favorably within the competitive landscape of Bitcoin mining and high-performance computing. The location’s existing infrastructure is a critical asset, reducing initial setup times and costs, thus accelerating the timeline for when Bitdeer can begin capitalizing on its increased capacity.

Does Bitdeer’s Expansion Affect the Crypto Industry?

Bitdeer’s expansion in Ohio is indicative of a broader trend where significant crypto and tech companies are establishing a physical presence in regions with the necessary infrastructure to support large-scale operations. This trend underscores the importance of strategic geographic positioning in the highly competitive tech and crypto industries, where access to reliable and ample power resources is a critical determinant of success.

As Bitdeer prepares to increase its operational footprint in Ohio, the implications for local economies are also significant. Such expansions bring with them job creation, increased local investment, and technological upskilling for communities. For Monroe County and the broader region, Bitdeer’s long-term commitment could serve as a catalyst for more tech-focused industrial activities and economic growth. Bitdeer’s major expansion in Ohio not only enhances its capacity to mine Bitcoin and develop AI through HPC but also positions it as a forward-thinking player ready to capitalize on the technological synergies these fields offer.