Bitdeer soared: Bitcoin mining grew by 370% year-over-year, hash rate by 420%
Bitdeer mining company is showing impressive dynamics. In May 2024, the volume of mined bitcoins reached 921 BTC, while in May last year this figure was only 196 BTC. Thus, the growth amounted to 370% year-on-year.
The key driver of this explosive increase was the large-scale expansion of its own computing power. Bitdeer's own hash rate grew by almost 420% over the year — from 13.6 EH/s to 70.2 EH/s. This indicates that the company is not just increasing its market presence, but is actively investing in equipment and infrastructure, aiming to take a leading position in the industry.
Notably, despite the aggressive growth in mining, the company is quite restrained in replenishing its bitcoin treasury. In May, it increased by only 98 BTC, reaching 171 BTC. For comparison: a year ago, Bitdeer's balance sheet held 1,351 BTC. This may indicate that the company prefers to sell most of the mined coins, possibly to finance further expansion or cover operating expenses.
My analysis: Such a sharp jump in hash rate and mining output amid growing competition and the approaching halving looks like a very aggressive strategy. Bitdeer is obviously betting on capturing market share now, so that later, after the block reward is reduced, it can have an advantage due to economies of scale. However, the reduction in BTC reserves on the balance sheet is a signal that the company may be experiencing a need for liquidity or is simply hedging against volatility risks. This trend is worth watching closely.