BitDeer and Riot Blockchain Compete for Dominance in Texas

BitDeer has emerged as a major competitor to Riot Blockchain in the Texas crypto mining landscape, according to recent financial disclosures. The company’s operational capacity reached 386 MW in the Lone Star state as of June 2022, and by the end of the year, it had increased its developed capacity at its Rockdale, Texas site to 562 MW. This puts BitDeer in direct competition with Riot, which claims to have 700 MW of developed capacity in the same city.

BitDeer’s half-a-gigawatt capacity is divided into three major segments: Proprietary Mining, Hashrate Sharing, and Hosting. While the company generated less revenue from proprietary mining compared to Riot, it made $75 million through Hashrate Sharing, a business model similar to selling cloud mining contracts using its own hashrate. In fact, revenue from the Hosting segment increased from $26 million in FY’21 to $60 million in the first half of 2022 alone.

According to an updated North American mining power distribution map by TheMinerMag, Texas has become the largest mining hub, with about two gigawatts of operating capacity as of Q4. This is based on data disclosed by 20 publicly listed mining companies. Despite facing industry challenges, Bitcoin mining continues to boom in Texas, as reported by Reuters.