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Bitdeer liquidated its entire bitcoin holdings to finance its transition to AI data centers.
Singapore-based BTC and AI mining firm divests all its holdings to enhance liquidity for growth, indicating a significant shift in capital strategy throughout the industry.
Mining, Bitcoin miners, fans (Michal Bednarek/Shutterstock)
Key points:
- Bitdeer (BTDR) has eliminated its bitcoin holdings as of February 20, according to its latest weekly report, to enhance liquidity for land acquisitions.
- This decision signifies a departure from the conventional strategy of miners retaining bitcoin as a treasury asset, as the firm emphasizes hash rate expansion and infrastructure development.
- Bitdeer recently announced a $325 million convertible notes offering and a $43.5 million equity raise to support data center expansion, HPC, and AI cloud initiatives.
Bitdeer (BTDR), a bitcoin mining and AI infrastructure company located in Singapore, has reduced its bitcoin reserve to zero, representing a significant deviation from the traditional miner approach of retaining coins as a sign of commitment, similar to firms like Strategy (MSTR).
The company disclosed BTC holdings of zero as of February 20, excluding customer deposits. It mined 189.8 BTC during its weekly update and liquidated the entire amount. Instead of treating bitcoin as a balance sheet asset, Bitdeer is converting production into liquidity.
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Bitdeer stated that the choice to sell bitcoin should not alarm the wider market, in a message on X, emphasizing that it is assessing various powered land acquisition possibilities and considers it wise to prepare liquidity at this time while continuing to enhance hash rate and mine additional bitcoin for its shareholders.
From an operational standpoint, growth for the company remains on track. Bitdeer mined 668 bitcoin in January, reflecting a 430% increase year-over-year, and raised its self-mining hash rate to 63.2 EH per second (EH/s), with a total proprietary hash rate reaching 65.1 EH/s.
Bitdeer is intensifying its efforts in AI infrastructure, deploying NVIDIA GB200 NVL72 systems in Malaysia and advancing the transformation of several sites in the U.S. and Europe from cryptocurrency mining to AI data centers.
AI expansion is significantly more capital-intensive than incremental mining developments, necessitating large-scale GPU clusters and upgrades to data centers.
Bitdeer has recently priced a $325 million convertible notes offering and a $43.5 million equity raise to finance data center expansion, HPC and AI cloud growth, as well as ASIC development.
In contrast to bitcoin mining, which is influenced by price fluctuations and halvings, AI and HPC contracts can provide more stable revenue streams. This shift also indicates an effort by miners to be perceived less as leveraged bitcoin proxies and more as entities focused on digital infrastructure and AI.
Other companies are following a similar path. Riot Platforms (RIOT) recently liquidated $200 million worth of bitcoin to finance operations and AI expansion. Bitfarms (BITF) is shedding its “bitcoin company” label and is doubling down on AI initiatives in the U.S. MARA Holdings (MARA) is also venturing into HPC and AI through a proposed 64% stake in France-based Exaion.
Bitdeer shares have decreased by 1% in pre-market trading, currently valued at $7.70 per share.
