Bitcoin miner Bitdeer acquires a $21.7 million power plant in Canada to boost mining operations

Bitdeer, a leading Bitcoin mining firm, has made a significant move by acquiring a $21.7 million power plant in Alberta, Canada. The acquisition includes a 19-acre site near Fox Creek, Alberta, which is fully licensed and already holds the necessary permits to construct an on-site natural gas power plant. This site, currently equipped with a 101 MW gas-fired power project, represents a strategic expansion for the company. The purchase includes plans to build a 99 MW interconnection grid in partnership with the Alberta Electric System Operator, which will provide the mining firm with additional capacity to mine Bitcoin.

With an energy production cost projected between $20 to $25 per megawatt-hour (MWh) based on current gas prices, Bitdeer’s acquisition provides a cost-effective foundation for its mining operations. Bitdeer’s Chief Strategy Officer, Haris Basit, highlighted that this acquisition is a critical part of the company’s strategy to become the first fully vertically integrated Bitcoin miner, granting it better control over energy costs, scalability, and operational efficiency.

The power plant, expected to be fully operational by the fourth quarter of 2026, will also allow Bitdeer to deploy up to 9 EH/s (exahashes per second) of its SEALMINER A3 mining machines. In addition, Bitdeer plans to sell power back to the Alberta grid during high-demand periods, helping stabilize gas prices and optimize operational costs.

In line with environmental sustainability goals, Bitdeer will incorporate a carbon utilization system at the site to capture CO2 emissions. This initiative aims to offset Canada’s carbon tax and could potentially generate revenue through carbon credits, positioning the project as a net-zero carbon producer.

Alberta’s Premier, Danielle Smith, expressed support for the project, highlighting the province’s growing role as a hub for technological innovation and energy production. Smith also encouraged other firms to consider Alberta if they have plans to bring their own energy production systems.

This move follows the increasing demand for Bitcoin and mining operations, particularly after the price of Bitcoin crossed the $100,000 mark in late 2024. Analysts have noted that Bitcoin miners saw substantial growth in the last quarter of 2024, which drove up mining activity and production rates. The increase in Bitcoin prices contributed to a surge in transaction fees, further enhancing the financial viability of large-scale mining operations like Bitdeer’s.

Bitdeer’s acquisition of this site marks the company’s first venture into Canada and adds to its growing portfolio of mining operations in countries such as the United States, Bhutan, and Norway.