Bitdeer increased bitcoin mining by 370% over the year: hash rate surged by 420%
Bitdeer, one of the leading public miners, is demonstrating impressive growth in operational metrics. In May 2024, the company mined 921 BTC, a 370% increase compared to May 2023, when only 196 BTC were mined. This surge was made possible by an aggressive expansion of computing power.
Key metrics: Bitdeer's proprietary hashrate grew by nearly 420% over the year — from 13.6 EH/s to 70.2 EH/s. This indicates a large-scale investment program and the commissioning of new equipment, likely including latest-generation models from leading ASIC miner manufacturers.
However, amid the explosive growth in mining, there is a paradoxical dynamic in the bitcoin treasury. In May, the company increased its BTC reserves by only 98 coins, bringing them to 171 BTC. For comparison, a year ago, with significantly lower mining volumes, the treasury stood at 1,351 BTC. This represents an 87% decline.
Analytical conclusion: This discrepancy between record mining output and minimal reserve growth points to a strategy of actively selling mined coins. Bitdeer is likely selling most of its BTC to finance capital expenditures (CapEx) — purchasing equipment, expanding data centers, and repaying debt obligations. This is a typical practice for fast-growing mining companies in the scaling phase, especially given the upcoming halving and the need to optimize production costs.
My expert opinion: This strategy is a reasonable move in the current market phase. Bitdeer is sacrificing short-term BTC accumulation for long-term growth in hashrate and market share. If the company continues to expand capacity at this pace, it will be among the beneficiaries of industry consolidation after the halving, squeezing out less efficient players. However, investors should closely monitor the level of debt burden and sales dynamics.