Bitdeer increased bitcoin mining by 370% year-over-year: hash rate surged by 420%
Mining company Bitdeer demonstrated impressive growth rates in May 2024. During the month, the firm mined 921 BTC, a 370% increase compared to May 2023, when only 196 BTC were mined. This surge was made possible by aggressive expansion of computing power.
Bitdeer's proprietary hash rate grew by nearly 420% year-over-year, from 13.6 EH/s to 70.2 EH/s. This indicates massive investments in equipment and infrastructure, likely focusing on the latest ASIC miners and energy supply optimization. However, despite the explosive growth in mining output, the company shows mixed dynamics in managing its reserves.
In May, Bitdeer increased its bitcoin treasury by 98 BTC, bringing it to 171 BTC. For comparison, a year ago this figure stood at 1,351 BTC. Such a sharp reduction in balance sheet holdings (more than sevenfold) may indicate a strategy of actively selling mined coins to finance operating expenses or capital expenditures for capacity expansion.
Analytical commentary: A 420% increase in hash rate with a 370% increase in mining output is a strong signal of efficiency, but reducing the treasury to a minimum raises questions. Bitdeer appears to be betting on scaling at the expense of accumulation, which may be justified in conditions of high bitcoin volatility but leaves the company vulnerable to sharp market movements. Investors should closely monitor how long this reinvestment phase will last.