Bitcoin miner Bitdeer has taken a significant step by selling all of its Bitcoin (BTC) reserves, leaving its holdings at zero. This move, outlined in the company’s latest operational update, has drawn attention across the cryptocurrency industry.
Bitdeer’s Complete BTC Liquidation
In its most recent report, Bitdeer revealed that its ‘pure holdings,’ excluding customer deposits, have entirely diminished to zero Bitcoin (BTC). During the last week, Bitdeer produced 189.8 BTC and sold the entire amount. Moreover, the company liquidated an additional 943.1 BTC from its treasury reserves.
Previously, in February, Bitdeer reported holding 943.1 BTC, having sold 179.9 BTC out of 183.4 BTC mined that week. While mining companies often sell a portion of production to cover operational expenses such as electricity and equipment costs, they typically maintain a treasury for Bitcoin price exposure. A complete liquidation of reserves is less common.
Impact on Bitdeer’s Market Position
This decision coincides with Bitdeer’s recent announcement to raise $300 million via a convertible senior note offering, with an option to extend the sale by an additional $45 million. The notes, due in 2032, can convert into company stock, cash, or both. The capital will fund data center expansion, AI cloud growth, mining hardware development, and other corporate necessities.
Bitdeer’s shares experienced a notable decline following this announcement, reflecting market concerns over its strategic changes. Founded by Bitmain’s former co-founder Jihan Wu, Bitdeer is also broadening its self-mining operations, increasingly using its own rigs instead of selling them to customers.
Industry Shift Towards AI and Cloud Services
In a broader industry trend, mining firms are pivoting towards artificial intelligence (AI) and cloud services. Recently, MARA Holdings acquired a majority stake in French computing infrastructure firm Exaion. This move highlights a strategic shift to diversify revenue amidst tighter margins post-2024 halving.
Several companies, including HIVE, Hut 8, TeraWulf, and IREN, are repurposing their facilities for data-center use, while firms like CoreWeave have fully transitioned into AI infrastructure providers. These developments mark a significant evolution in the cryptocurrency mining landscape.
As the industry adapts to changing market dynamics, Bitdeer and its peers are exploring new avenues to maintain profitability and growth.
