Soluna and Bitdeer Expand Texas Bitcoin Mining Deal by 7 MW
Partnership grows to 35 MW at wind-powered Texas site ahead of schedule.
1Deal expansion before completion
Soluna and Bitdeer are expanding their Project Kati 1 agreement by 7 MW before the initial 28 MW deployment is fully operational. The amendment, announced September 28, brings Bitdeer's total planned capacity at the Texas site to 35 MW. This early expansion signals confidence in the wind-powered facility's economics. The additional capacity fully subscribes the K1BC phase of the project, meaning all allocated power has been claimed.
2Unique co-mining structure
The partnership uses an innovative co-mining model where Bitdeer supplies mining hardware while Soluna provides infrastructure and renewable power. Unlike traditional hosting deals with fixed fees, Soluna shares in the Bitcoin mining proceeds. For Bitdeer, this avoids the need to build new sites while securing renewable energy access. The companies expect to deploy Sealminer A2 Pro Air machines for the expansion.
3Renewable energy focus
Project Kati 1 is an 83 MW facility connected to wind generation in Willacy County, Texas. Soluna specializes in locating energy-intensive computing near underutilized renewable sources. While Bitcoin mining remains their primary workload, the company is positioning sites for other high-performance computing applications. The wind-powered location helps mitigate Bitcoin mining's environmental concerns.
4Technical capacity details
The 7 MW expansion is expected to increase Bitdeer's hash rate at Kati 1 to approximately 2.42 EH/s (exahashes per second). All new capacity should be operational by November 2023. The site's total potential capacity remains 83 MW, leaving room for future expansions beyond the current 35 MW commitment from Bitdeer.
5Strategic timing
The expansion comes just one month after the original 28 MW deal was announced in August 2023. This rapid scaling suggests both companies see strong potential in the site's economics despite Bitcoin's price volatility. The move contrasts with broader industry caution following 2022's market downturn.
6Business model advantages
Soluna's model benefits from Texas' abundant renewable energy and flexible grid operations. By using otherwise curtailed wind power, they achieve lower energy costs. Bitdeer gains infrastructure without capital expenditure for new facilities. The shared revenue model aligns incentives for both parties to maximize mining efficiency.
7Industry context
The deal reflects Bitcoin mining's ongoing migration to renewable energy sources in response to environmental criticism. Texas has emerged as a global mining hub due to its deregulated power market and renewable capacity. However, the industry still faces challenges from energy price volatility and regulatory scrutiny.
8Future implications
The rapid expansion suggests Bitcoin miners are regaining confidence after 2022's downturn. Soluna's model could become a template for sustainable mining operations. With 48 MW remaining at Kati 1, further expansions may follow if economics remain favorable. The deal also demonstrates renewable energy's growing role in power-intensive computing.
Original article: NewsBTC — Soluna and Bitdeer Expand Texas Bitcoin Mining Deal by 7 MW