June has been an exciting month for mega miner Bitdeer. Following the news of Tether acquiring a significant stake in the company, Bitdeer also announced its strategic acquisition of ASIC hardware manufacturer Desiweminer. Concurrently, Bitdeer unveiled its technological roadmap for their proprietary SEALMINER, targeting an expected efficiency of 5 J/TH by the end of 2025. Let’s delve into Bitdeer and their ambitious plans. For premium members, we will explore the efficiency improvements made over the last decade and provide insights on how to maintain competitiveness in a sub 10 J/TH environment. We will elaborate on the following topics:
About Bitdeer (BTDR)
Bitdeer’s Relationship with Bitmain
Bitdeer’s Strategic Acquisition of Desiweminer
Tether Investment Boosting Ambitious Plans
Ambition to Disrupt the ASIC Miner Market
Premium Members Only
- Bitmain Launches S21 XP
Efficiency Curve is Flattening Out
Decrease in Chip Size over Time
Effect of New Generation ASICs on Average Network Efficiency
How to Optimize Efficiency in a Sub 10 J/TH World
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About Bitdeer (BTDR)
With 8.7 EH/s deployed, Bitdeer is the sixth largest publicly traded mining company. Bitdeer offers digital asset mining services, including cloud mining, mining farms, and integrated mining operations. The company aims to provide users with access to mining resources and technology without the need to manage physical hardware or mining infrastructure themselves.
Bitdeer’s Relationship with Bitmain
Bitdeer was founded by Jihan Wu, one of the co-founders of Bitmain. Bitmain is a significant player in the cryptocurrency mining industry, primarily known for designing and manufacturing ASIC hardware. It has been an important supplier of mining equipment for Bitdeer. However, Bitdeer’s dependence on Bitmain miners seems to be changing. Last week, Bitdeer made two important announcements: the acquisition of ASIC manufacturer Desiweminer and the release of a technology roadmap for the SEALMINER Bitcoin mining machine.
Bitdeer’s Strategic Acquisition of Desiweminer
In a press release on June 6th, Bitdeer announced its strategic acquisition of ASIC manufacturer Desiweminer. This announcement follows a rigorous ten-month due diligence period during which Bitdeer thoroughly evaluated Desiweminer’s technology, engineering team, and supply chain. Desiweminer’s cutting-edge chip designs are highly complementary to those developed by Bitdeer and are ideally suited for advanced semiconductor processes at 4nm and below.
“We are thrilled to welcome Desiweminer into the Bitdeer family. Desiweminer’s remarkable achievements in ASIC design and their proven track record, with nearly 30,000 high-performance machines in the market, make them one of the top ASIC design groups in the world” – Linghui Kong, Chief Business Officer of Bitdeer.
Bitdeer is acquiring Desiweminer in an all-stock deal valued at $140 million. The Desiweminer team will join Bitdeer’s ASIC design team in Singapore, further strengthening the company’s capabilities and accelerating its time to market. The ongoing and substantial investments in the ASIC business are a cornerstone of Bitdeer’s strategy to drive innovation and deliver long-term value for its shareholders.
Tether Investment Boosting Ambitious Plans
Since the beginning of June, Tether owns 25% of Bitdeer’s shares, making the company behind USDT the second-largest shareholder, after Victory Courage Ltd., which is registered to Bitdeer CEO Jihan Wu.
As a result of the deal, Bitdeer was able to raise $100 million in financing. The deal also provided Tether with a warrant to purchase up to an additional $50 million of Bitdeer’s stock over the next year. Bitdeer stated that it plans to use the proceeds to expand its data centers, develop ASIC-based mining rigs, and for other general corporate purposes.
Ambition to Disrupt the ASIC Miner Market
Bitdeer reported research and development expenses of $21.2 million in Q1 this year, including a one-time incremental development expense of $14.1 million related to the SEAL01 chip. Given the background of the leadership team, Bitdeer is well-positioned to disrupt and capture market share in the multi-billion-dollar ASIC industry over the coming years.
SEALMINER Technology Roadmap
The SEAL01 chip was developed using advanced 4-nanometer process technology. Initial tests show a power efficiency of 18.1 J/TH. The first batch of SEALMINER A1 is scheduled for mass production and delivery in Q3 2024, with anticipated efficiency ranging between 20 J/TH and 23 J/TH. In Q4 2025 the SEALMINER A4 will hit the broader market which has an expected efficiency below 10 J/TH.
And now we move on to the next content for our Premium Members:
- Bitmain Launches S21 XP
Efficiency Curve is Flattening Out
Decrease in Chip Size over Time
Effect of New Generation ASICs on Average Network Efficiency
How to Optimize Efficiency in a Sub 10 J/TH World
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