Bitdeer takes off: Bitcoin mining grew by 370% in a year — hash rate outpaces the market
Mining company Bitdeer demonstrated impressive operational results for May 2024. During the month, the firm managed to mine 921 BTC — nearly 4.7 times more than the 196 BTC in May 2023. Thus, the annual growth in mining output amounted to 370%.
The key driver of this surge was the large-scale expansion of its own computing power. Bitdeer's proprietary hash rate increased by 420% over the year — from 13.6 EH/s to 70.2 EH/s. This more than fivefold increase indicates that the company is aggressively expanding its equipment fleet and commissioning new data centers, outpacing the average growth rates of the industry.
However, attention should be paid to the dynamics of the bitcoin treasury. During May 2024, Bitdeer added 98 BTC to its reserves, bringing them to 171 BTC. For comparison, a year ago this figure stood at 1,351 BTC. The decline in treasury volume against the backdrop of a sharp increase in mining output signals that the company is likely actively selling the mined coins to finance operational activities and capital expenditures, rather than accumulating them.
Analytical Commentary
Bitdeer's 370% growth in mining output and 420% growth in hash rate is an outstanding result even against the backdrop of the overall rise in the mining industry. However, the sharp reduction in the bitcoin treasury (from 1,351 to 171 BTC) with such production volume hints that the company is operating with high debt leverage or aggressively reinvesting profits. In the context of the halving and shrinking miner margins, such a strategy may be justified, but investors should closely monitor Bitdeer's liquidity balance in the coming quarters.