Bitdeer - Sharing two updates

Here is the backdrop. Facebook is entering the cloud business and folks are fretting that Facebook has excess capacity. The AI pick and shovel trade is over. But then Facebook turned around and announced it is building a 1GW AI DC in Alberta, Canada. Think the read is Facebook is building a new cloud business to compute with other hyperscalers.

Two updates happened this week worth sharing.

1. This is the most important development to be aware of for Bitdeer. See Pic 2. Essentially, the court in Ohio is ready to rule on if BTDR and the Monroe Port Authority can dismiss the case filed by American Heavy Plate. Looking at the filings in the case, both parties already pled before the judge. The plaintiff (AHP) then applied to gain access to all sorts of documents from external parties (e.g. the engineering firm engaged by Bitdeer for the site blue print, the local power authority to gain access to its site engineering plan etc etc). Bitdeer and the Port Authority actually applied to have a status conference to work out what can proceed or not.... Instead of having all the parties aligned and figure out how to proceed with the case, the court is prepared to stay the different discovery applications and instead proceed to determine the critical issue of if Bitdeer/Port Authority can apply to dismiss the case outright..... I am not a lawyer so I am speculating here. My read is it can go the right way for Bitdeer. Why ? The judge can easily let the case drag on and allow AHP to gain access to the documents. Instead, the judge has decided to determine if the case has merits at all (which was already argued in front of the court). By the way, when I read the filings by both parties, I thought the arguments made by Bitdeer made more sense. Key reason being AHP only leases say 10% of the land and it is trying to stop the Port Authority from leasing the remaining 90% of the site to Bitdeer. In addition, AHP was arguing that its operation would be severely harmed by the construction (when construction has not even started). Fingers crossed it goes the right way for Bitdeer. Then its Clarington site is live again i.e. it can seek co-lo tenant.

2. Terawulf announced a co-lo deal with Anthropic where Anthropic has entered into a 20-year for a site (which will yield $19bn over time). Of note, the "rent" worked out to be around $2.4M/MW, the highest so far we have seen. If AI has excess capacity, why would Anthropic commit to pay the highest rent so far in the industry ? See Pic 1.

Bitdeer has pulled back a fair bit from its recent high..... On balance, I still think it can close its deal formally in Tydal. If it wins the case in Ohio, it will be a positive surprise.