Bitdeer Technologies, a prominent Singapore-based Bitcoin miner, has made a significant move by liquidating its entire Bitcoin treasury, marking a complete departure from the traditional strategy of holding Bitcoin as a corporate asset. As of February 20, Bitdeer reported holding zero BTC, following an eight-week drawdown from approximately 2,000 BTC at the end of 2023.
In its latest production update, Bitdeer disclosed that it produced 189.8 BTC during the reporting period and sold the entire amount. The company also offloaded its remaining 943.1 BTC reserves in a single week, effectively wiping out its balance sheet holdings. This liquidation excludes customer deposits, which remain unaffected.
A Shift in Strategy
The decision to liquidate the Bitcoin treasury comes as mining economics face increasing pressure. The Bitcoin network difficulty recently increased by 14.7%, while the hashprice has fallen below $30 per PH/s/day. Bitdeer’s gross margin declined to 4.7% in the fourth quarter, down from 7.4% a year earlier, reflecting the operational challenges following the halving and increased competition.
Despite the liquidation, Bitdeer’s mining output has increased. The company mined 668 BTC in January, up 430% year over year, and expanded its self-mining hashrate to 63.2 EH/s, with a total proprietary hashrate of 65.1 EH/s. However, instead of retaining the mined coins, Bitdeer is converting them into cash to support capital expenditures and strategic initiatives.
Capital Allocation and Diversification
Bitdeer is actively raising capital to fund its expansion beyond core mining operations. The company recently priced a $325 million convertible notes offering and a $43.5 million equity placement, with the proceeds earmarked for data center buildouts, ASIC development, and growth in high-performance computing (HPC) and AI cloud services.
In a post on X, Bitdeer emphasized that the decision to sell its Bitcoin treasury should not be interpreted as a signal about Bitcoin’s long-term prospects. The company framed the move as a liquidity measure to evaluate multiple land acquisition opportunities and scale infrastructure. “Our decision to sell Bitcoin should not be a concern for the broader market,” Bitdeer stated.
Industry Implications
Bitdeer’s move sets it apart from other public miners that continue to hold significant Bitcoin reserves. MARA Holdings maintains a treasury of roughly 53,250 BTC, while Riot Platforms holds around 18,000 BTC. Strategy, formerly MicroStrategy, remains the largest corporate holder with more than 717,000 BTC on its balance sheet.
Across the sector, miners are increasingly reallocating capital toward AI and HPC infrastructure, which can offer more stable revenue streams less directly tied to Bitcoin price cycles. Bitdeer has begun rolling out NVIDIA GB200 NVL72 systems in Malaysia and is converting select sites in the United States and Europe from crypto mining facilities into AI data centers.
Market Reactions and Future Outlook
The liquidation of Bitdeer’s Bitcoin treasury coincides with a significant drop in Bitcoin’s price, which plunged more than 5% on Sunday evening, sliding below $65,000. The price drop, driven by large holders sending coins to exchanges and recent buyers exiting at a loss, has pushed Bitcoin near $64,500, down roughly $3,500 on the day. This marks Bitcoin’s first stretch of six consecutive negative weekly closes and three consecutive weekly closes beneath its 2021 high.
Despite the market volatility, Bitdeer’s stock was trading near $7.75 in pre-market trading. The company has not indicated whether it intends to rebuild its Bitcoin position in the future. As the crypto market continues to evolve, Bitdeer’s strategic shift toward diversification and capital efficiency may serve as a model for other miners navigating the challenges of a dynamic and competitive landscape.
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