Bitdeer Mining Insights

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Canaan Inc. is accelerating its North American mining expansion, targeting 10 EH/s by mid-2025. Through a partnership with Luna Squares Texas LLC, Canaan’s subsidiary Beet Digital LLC will deploy Avalon A14 and A15 machines at a 30 MW site in Texas, adding 1.62 EH/s by early 2025. The initiative includes $50 million in financing to support infrastructure upgrades and collaborations. Canaan has also secured an order from Hive Blockchain and plans to install 6,000 Avalon A14 units at Stronghold Digital Mining's Pennsylvania site, contributing 0.9 EH/s. CEO Nangeng Zhang emphasized North America's importance, highlighting lower electricity costs averaging $40 per MW at the Texas site as a key advantage.

The Russian Energy Ministry has proposed periodic restrictions on cryptocurrency mining in regions facing energy shortages, leveraging powers granted by the new national cryptocurrency law enacted this month. According to a TASS report, the proposal aims to prioritize essential activities over crypto mining in areas with forecasted energy deficits or subsidized electricity. The restrictions, set to begin in December, will be reviewed by a governmental commission on November 18. The Ministry justified the measures, citing the need to ensure stable energy supplies in critical regions during shortage periods. While crypto mining remains significant for Russia’s economy, these actions highlight the priority given to other infrastructure needs.

Hive Mining has announced progress on its 100MW bitcoin mining facility in Paraguay, alongside a $20 million investment in Canaan Avalon A1566 application-specific integrated circuits (ASICs) to revamp its mining hardware. The purchase includes 6,500 units, with 500 arriving this week and the rest scheduled for delivery from December 2024 to March 2025. Hive CEO Aydin Kilic highlighted the importance of this investment, calling it a "significant advancement in our optimized-ROI investment strategy." The new hardware, chosen for its strong ROI in both bear and bull markets, will replace less efficient models, boosting Hive’s mining efficiency and output as the company doubles down on its Paraguayan operations.

Block, Inc. has announced a strategic shift toward expanding its presence in bitcoin mining, emphasizing its commitment to cryptocurrency infrastructure. The shareholder letter detailed how Block’s focus on bitcoin mining aligns with its broader vision of decentralized financial services. The company’s deeper involvement in mining is seen as a natural extension of its existing cryptocurrency ventures, including investments through Cash App and Bitkey wallet. By entering the mining space, Block aims to improve capital efficiency, diversify its funding, and meet the rising demand for mining infrastructure. The move signals a calculated effort to allocate resources toward high-growth opportunities, potentially delivering strong returns for shareholders.

Hodler Investments from the UAE and China’s GCL Energy Investment have partnered to develop a distributed energy infrastructure project in Ethiopia aimed at powering advanced data centers. The collaboration involves joint investments in energy projects that utilize Ethiopia’s underused electricity resources. GCL Energy Investment, a subsidiary of Golden Concord Group, will build the infrastructure needed to support data center operations. This initiative aligns with Ethiopia's plan to expand its data center market from $95 million in 2022 to an estimated $226 million by 2028.