In a significant shift from conventional strategies, Bitdeer, a Bitcoin mining firm based in Singapore, has liquidated its entire Bitcoin treasury. This decision emerges amid a prevailing downturn in mining profitability, prompting the company to reevaluate its operations and pursue a new avenue in artificial intelligence.
On February 20, Bitdeer announced its zero Bitcoin holdings, indicating a total depletion of its reserves, with the exception of customer deposits. The mining company disclosed that it had sold its entire recent output of 189.8 Bitcoin while also recording a substantial net reduction of 943.1 Bitcoin. This aggressive sell-off underscores a worsening crisis for miners grappling with intensified margin pressures.
The landscape of Bitcoin mining has been particularly turbulent. After a brief period of relief due to adverse weather conditions that temporarily disabled U.S. mining fleets, the Bitcoin network faced a swift rebound. A recent network adjustment saw its difficulty surge by 14.7%, the largest increase since May 2021. This change has largely negated any operational advantages miners had previously gained, resulting in a drastic decline in mining profitability.
Currently, the profitability of Bitcoin mining, assessed through the metric of hashprice, has fallen below $30 per petahash per day—placing it perilously close to historical lows and leading to increased production costs.
To navigate these challenges, Bitdeer is strategically refocusing its efforts towards artificial intelligence, appealing directly to Wall Street for financial backing. On February 20, the company announced an expanded private sale of convertible senior notes, valued at $325 million, set to close on February 24. This sale includes an option for an additional $50 million in notes for initial purchasers, indicating a robust defensive financial strategy.
Of the proceeds, $138.2 million is earmarked for repurchasing the company’s existing 5.25% convertible senior notes due in 2029, which effectively extends Bitdeer’s operational timeline by restructuring outstanding debt. Additionally, $29.2 million will be utilized for capped call transactions—essentially providing an insurance policy that mitigates the risk of shareholder dilution should the stock price rise.
The remainder of the capital will facilitate a strategic departure from exclusive focus on crypto mining. Bitdeer plans to leverage these funds to broaden its high-performance computing and AI cloud offerings, develop proprietary ASIC mining rigs, and expand data center facilities.
Amidst these changes, Bitdeer has strikingly become the largest publicly traded self-miner globally. Reports indicate that the company’s self-managed hash rate reached 63.2 exahashes per second, surpassing rivals like Marathon Digital, which has a hash rate of 60.4 EH/s. This position not only solidifies Bitdeer’s standing in the industry but also highlights the company’s adaptability amidst challenging market conditions.
