Bitdeer, a Bitcoin mining firm, secures lease for new Ohio location
Bitdeer, a Bitcoin mining company, recently revealed a long-term leasing agreement with the Monroe County Port Authority for a site situated at the Hannibal Industrial Park in Clarington, Ohio. The site, previously home to an aluminum factory, possesses the essential power infrastructure required to accommodate Bitdeer’s mining activities. Bitdeer’s objective involves securing up to 570 MW of additional power through the site in two phases. The initial phase aims to deliver 266 MW by Q3 2025, with the remaining 304 MW becoming accessible subsequent to a review by utility authorities.
The company has gained notable attention within the industry. Mark Palmer, an analyst, expressed confidence in Bitdeer in March, highlighting the company’s low energy costs, averaging $0.04 per kilowatt-hour. In May, Tether, a stablecoin issuer, disclosed a $150 million investment in Bitdeer, acquiring over 18 million shares. Additionally, the company holds a warrant to purchase an extra 5 million shares at $10 per share.
The Bitcoin halving event in April 2024 has intensified concerns regarding miner profitability. Miners are grappling with elevated energy expenses and a reduced block reward of 3.125 Bitcoin. Cantor Fitzgerald, a financial services firm, conducted research indicating that numerous Bitcoin mining entities may face profitability challenges post-halving due to the all-in costs associated with mining a single Bitcoin. The report highlighted substantial mining costs ranging from $43,913 to $62,276 per BTC for the 11 potentially impacted mining companies.
Among the companies scrutinized, Argo Blockchain Mining emerged as the entity with the highest mining costs at $62,276 per Bitcoin, closely trailed by Hut8 at $60,360 to mine one coin. Cantor Fitzgerald’s analysis utilized a market price of $40,000 to establish the profitability threshold, which has not been revisited since the halving event. The return to this price level remains elusive in the current landscape.
