Bitcoin mining firm Bitdeer has acquired 19 acres of land in Alberta, Canada for $21.7 million. The power plant could scale up to 1 GW of power.
In a press release, the Singapore-based Bitcoin (BTC) mining firm announced it has successfully completed an acquisition deal for a 101 MW site and gas-fired power project located near Fox Creek, Alberta, Canada worth $21.7 million.
According to Bitdeer, the site is fully licensed and already includes the permits required to construct an on-site natural gas power plant. In addition, Bitdeer also received approval to build a 99 megawatt interconnection grid with Alberta Electric System Operator worth around $30 million or $300,000 per MW. The 99 MW grid of datacenter capacity will be used to mine more Bitcoin.
The site comes with a projected energy production cost of around $20 to $25 per MWh, according to current gas prices.
In partnership with Engineering, Procurement and Construction or EPC Company, Bitdeer plans to develop and build a power plant that will be ready and energized by the fourth quarter of 2026. In addition, Bitdeer will be allowed to deploy 9 EH/s of its SEALMINER A3 mining machines once development on the site is complete.
Bitdeer also plans to sell power back to the Alberta grid to stabilize gas prices during high demand periods, which it hopes can optimize operational costs.
Chief Strategy Officer at Bitdeer, Haris Basit, stated the deal marks Bitdeer’s first site acquisition in Canada. The company has previously acquired mining sites in the U.S., Bhutan and Norway.
“It marks a significant step in our strategy to become the first fully-vertically integrated Bitcoin miner, giving us unmatched control over costs, energy efficiency, and scalability,” said Basit in a statement.
As part of the deal, Bitdeer will deploy a carbon utilization system that captures CO2 on the site, making it a net zero carbon producer project. This is meant to offset Canada’s carbon tax and potentially generate revenue through carbon credits.
Premier of Alberta, Danielle Smith, welcomes the Bitcoin mining project and encourages other firms to come to Alberta if they want to “do business and have a plan to bring your own power.”
“Today’s investment is another sign that Alberta continues to be a leader in technology and innovation not only across the country, but across the world,” said Smith.
According to H.C. Wainwright analysts, Bitcoin miners experienced significant growth in the last quarter of 2024 after Bitcoin crossed $100,000 for the first time. The rise of Bitcoin prices subsequently raised mining activity as BTC production went up by 16.4% on a quarter-over-quarter basis while transaction fees surged by 59.4%.
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