Application-Specific Integrated Circuit (ASIC) Chips

ASIC chips are essential for the Bitcoin mining sector, designed specifically to efficiently solve Bitcoin’s SHA-256 algorithm and earn block rewards.

One notable ASIC miner, the Antminer S19, achieves a staggering 82 trillion computations per second, which is 820 times the number of stars in the Milky Way. The ASIC market, valued at $30 billion, is largely dominated by Bitmain, whose machines account for around 80% of Bitcoin’s hashrate, according to TheMinerMag.

Bitdeer’s New ASIC Architecture

Singapore-based Bitdeer (BTDR) plans to disrupt this market with a new ASIC chip architecture that promises higher efficiency and improved transparency in manufacturing. Jeff LaBerge, Bitdeer’s head of capital markets, emphasized the need for transparency, stating that major players like Bitmain and MicroBT operate opaquely, making it challenging for buyers to plan.

Shanon Squires of Compass Mining highlighted that increased insight into ASIC production would help miners better anticipate hardware shipments and Bitcoin difficulty estimates. Bitdeer aims to offer frequent updates on delivery volumes, setting a positive precedent in an otherwise opaque industry.

Efficiency in ASIC Development

Since 2014, ASIC designs have remained relatively unchanged, with the most significant efficiency increases arising from advanced manufacturing techniques by companies like TSMC. While earlier models, like Canaan’s Avalon from 2013, had power efficiencies of 6,000 joules per terahash (J/TH), the current leading model, Bitmain’s Antminer S21XP Hydro, achieves 12 J/TH.

Bitdeer is developing an entirely new ASIC architecture aiming for efficiencies below 10 J/TH. Its SEALMINER A3 model has already showed promising results, achieving 9.7 J/TH. Future models like the SEALMINER A4 are expected to redefine efficiency standards further, targeting 5 J/TH.

Innovative Chip Manufacturing Process

Bitdeer’s research and development teams, located in Singapore and Silicon Valley, are working on new chip designs. The company allocates $6-8 million quarterly for this purpose. After blueprint finalization, designs are sent to TSMC for production.

The process involves creating a mask for chip manufacturing in wafers, with extensive testing and potential modifications during prototyping. Bitdeer invests significantly in this process, spending millions at each production stage.

Despite high manufacturing costs, Bitdeer recovers capital quickly, as customers typically provide 25%-50% deposits on orders. This efficient cycle benefits both Bitdeer’s manufacturing and mining operations, helping them reduce costs and profit from their ASICs.

Future Aspirations

Established in 2021, Bitdeer is gradually transitioning from a hosting model to becoming a major player in ASIC manufacturing. With ambitions to challenge Bitmain and MicroBT’s dominance, LaBerge is confident in Bitdeer’s team and technology to become the top market contender.