Crypto Miner BitDeer Boosts Texas Capacity To 562 MW By H2 2022
- BitDeer, a subsidiary of former Bitmain co-founder Jihan Wu, revealed that it had grown the capacity of its Texas site to 562 MW by the end of 2022.
- Half gigawatt capacity has supported diverse business models with three main segments: Proprietary Mining, Hash Rate Sharing, and Storage.
- With the Bitcoin price falling in 2022, the three segments of BitDeer play a more equal role in revenue contribution than in previous years.
BitDeer revealed 522 megawatts (MW) of mining capacity in use across the US and Norway as of June 22, providing 4.2 EH/s and 6.3EH/s in stored hash rates, respectively, exclusive storage and exploitation.
BitDeer is known as a subsidiary of former Bitmain co-founder Jihan Wu. This mining company offers over ten industry-leading cryptocurrencies, mineable through an extensive network of mining farms. It has five mining farms worldwide and members in over 200 countries/regions.
Based on the investor’s previous presentation, BitDeer’s operating capacity as of September 21 is 280 MW. Much of its growth since then has been driven by construction in Rockdale, Texas.
The expansion of BitDeer in Rockdale places it in direct competition with Riot, who asserts to have 700 MW of developed capacity in the same Texas city.
Three key business models have been enabled by BitDeer’s half-gigawatt capacity: storage, hash rate sharing, and proprietary mining. But, BitDeer has already made $75 million from Hash Rate Sharing, similar to selling cloud mining contracts using its hash rate. BitDeer earns significantly less money from proprietary mining than Riot does.
The three BitDeer sectors contribute to revenue more equally than in prior years due to the decline in the price of Bitcoin in 2022. The Hosting segment’s revenue increased by 60% in the first half of 2022, from $26 million in FY21 to $60 million.
Bitcoin Mining difficulty increased by 7.56% on Friday, reaching a record high along with the network hashrate, showing that miners are applying more computing power. The difficulty level changes about every two weeks and indicates how much computing power is required to mine Bitcoin blocks to be rewarded with Bitcoins.
Bitcoin mining difficulty hit 46.84 trillion at block 782,208 in Friday’s correction, following a 1.16% increase in the previous sentence on March 11, according to data from BTC.com.
Bitcoin’s hashrate, a measure of the computing power used by miners, hit around 395.15 exahashes per second on Thursday, reaching a historic high.
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