Bitdeer's Big Bet on AI Expansion
Bitdeer, a major player in Bitcoin mining, is significantly expanding its footprint in artificial intelligence. The company has signed a long-term lease for a data center in Norway, securing 121 megawatts of computing power under a 16-year agreement valued at up to $4.7 billion. This marks a major shift as it moves beyond cryptocurrency into the rapidly growing AI sector.
The data center will be leased to a subsidiary of Volta Infra, a company linked to NVIDIA. According to Bloomberg, Volta has a cloud contract with Anthropic, though Bitdeer has not confirmed the identity of the final customer. It is clear, however, that the facility will be optimized for NVIDIA GPU-based AI workloads, a critical component for modern machine learning and data processing.
To ensure financial security, financial institutions like JPMorgan and an unnamed global bank are set to issue $1.3 billion in letters of credit. These are bank guarantees that protect Bitdeer from potential non-payment by the tenant. While the deal is not yet finalized, the company reported a strong market reaction: its shares surged about 8% in early Nasdaq trading. Investors appear confident in Bitdeer's new direction into AI and data center infrastructure.
Diversification Strategy and BTC Liquidation
To reduce dependence on Bitcoin, Bitdeer has been diversifying its business. The company is investing in AI infrastructure and also expanding its own hardware manufacturing to cut reliance on third-party suppliers. As part of this effort, Bitdeer recently announced a $36 million investment in a new manufacturing site in Nevada.
In a move that sets it apart from its peers, Bitdeer sold all of its Bitcoin holdings in February. At that time, the company held around 943 BTC, which it has now fully liquidated. Despite this, the company remains committed to the broader Bitcoin ecosystem. Other mining companies, including MARA Holdings and Riot Platforms, continue to hold large amounts of Bitcoin, with MARA alone reportedly holding over 36,000 BTC.
Bitdeer executive Ross Gann explained that the BTC sales were aimed at financing the company's expansion. This includes acquiring powered land for both AI and Bitcoin mining projects. By divesting its Bitcoin reserves, Bitdeer has carved out a distinct path in an industry where most other public mining firms are still heavily invested in holding Bitcoin as part of their treasuries.