Bitdeer takes off: Bitcoin mining increased by 370% in a year — what is behind this surge?
The mining industry continues to demonstrate impressive scaling rates, and Bitdeer is a prime example. According to my analysis of operational data, in May of this year, the company increased its bitcoin production to 921 BTC, compared to just 196 BTC in May last year. Thus, the annual growth reached a colossal 370%.
The key driver of this growth was the aggressive expansion of computing power. Bitdeer's own hash rate increased by nearly 420% over the same period — from 13.6 EH/s to 70.2 EH/s. This indicates that the company is not just keeping up with the market but is actively investing in new equipment and infrastructure, outpacing many competitors.
However, despite the impressive leap in production, the reserve management strategy has undergone significant changes. In May, the company added only 98 BTC to its bitcoin treasury, bringing the total reserve to 171 BTC. For comparison, a year ago this figure stood at 1,351 BTC. This sharp reduction in reserves amid rising production suggests that Bitdeer has likely shifted to a more aggressive sales strategy — possibly to finance further capacity expansion or cover operating expenses in a volatile market.
My expertise: A 420% increase in hash rate is an undeniable signal of technological leadership, but the sharp reduction in BTC reserves deserves close attention. Investors should assess how sustainable this model is: if the company sells nearly all the coins it mines, it becomes more sensitive to short-term bitcoin price fluctuations. However, in the long term, if these funds are directed toward scaling, the returns could be impressive.