Bitdeer to Raise $100 Million To Expand Bitcoin Mining Facility

As per the sources familiar with the matter, popular crypto-miner Bitdeer Technologies is looking to raise over $100 million from private credit firms as part of its expansion plans. This development comes three weeks ahead of the upcoming Bitcoin halving which would be a game-changing event for the miners.

Bitdeer to Ramp Up Bitcoin Mining Capacity

As per the latest reports, Bitdeer is currently in talks with its financial advisor to secure funding for expanding its Bitcoin mining activity. The source familiar with the matter said that the Bitcoin miner is likely to undertake several other initiatives amid this funding raise.

However, the anonymous sources added that the details of these financial arrangements are likely to change amid the ongoing conversations.

Amid Bitcoin’s 64% surge already so far in 2024, several crypto firms are actively seeking fresh capital to fuel their growth plans. The current rally in the Bitcoin price comes on the backdrop of the strong demand for Bitcoin exchange-traded funds (ETFs). Several traditional asset managers have joined the bandwagon with the expectation of attracting interest from the broader investor base.

Top players like MicroStrategy and Coinbase have already started issuing their convertible notes. On the other hand, Bitcoin miners have been exploring other options in the equity market.

Crypto miner Bitdeer is undergoing some key changes at the management level. Earlier this month, the Bitcoin miner named Jihan Wu as the company’s new chief executive officer.

Deploying Sealminer A1 Rigs

Bitdeer (Nasdaq: BTDR) made waves in early March while introducing its in-house Bitcoin mining processor, the SEAL01, which boasts a state-of-the-art 4-nanometer (nm) manufacturing process. The publicly traded mining company revealed on Tuesday its plans to bolster its hash rate by 3.4 EH/s this year, leveraging its newly developed Sealminer A1 units. It noted:

“The company intends to install its own recently announced SEALMINER A1 miners at its mining datacenters in Rockdale, Texas in the United States; and, Norway in Q3 and Q4 2024 to accomplish this initial 3.4 EH/s expansion. Bitdeer will add approximately 4.8 EH/s of [hashrate] and retire 1.4 EH/s of older mining rigs. This expansion is expected to grow the total proprietary [hashrate] from 8.4 EH/s to approximately 11.8 EH/s.”

By 2025, Bitdeer expects a surge of 30 to 40 EH/s in its mining operations. Furthermore, the Bitcoin miner will also be replacing its 7 EH/s older mining rigs with more advanced models. With this, Bitdeer will be able to add 23 EH/s of hashrate to its existing Bitcoin mining facility and data centers.