Bitdeer demonstrates explosive growth: bitcoin mining increased by 370% year-over-year
May 2024 was a landmark month for mining company Bitdeer. According to my analysis of operational data, the firm mined 921 BTC, representing a colossal jump of 370% compared to the 196 BTC mined in May 2023. This result is a direct consequence of the aggressive capacity scaling strategy I have been tracking for several quarters.
The key driver of growth was the company's own hash rate. During the reporting period, it increased by nearly 420% — from 13.6 EH/s to an impressive 70.2 EH/s. Such a sharp increase in computing power indicates that Bitdeer has successfully integrated new equipment and likely completed the modernization of its data centers. This places the company alongside the largest public miners actively competing for network share after the halving.
However, an interesting point is observed in the dynamics of the Bitcoin treasury. Despite record mining output, the company increased its reserves by only 98 BTC in May, bringing them to 171 BTC. For comparison, a year ago this figure stood at 1,351 BTC. Such a drastic difference points to a shift in financial policy. Bitdeer, like many other players, is transitioning from a strategy of accumulation to actively selling mined coins to finance operating expenses and debt obligations, as well as to reinvest in capacity expansion.
Analytical Commentary
The 420% increase in hash rate with a "mere" 370% increase in mining output indicates that the company faced increased network difficulty. In the post-halving period, when the block reward has been reduced, the efficiency of using each EH/s becomes a critical factor. Bitdeer demonstrates the ability to increase market share, but the reduction of the treasury to 171 BTC is a signal to investors that the company is prioritizing liquidity over long-term holding. In the current macroeconomic environment, this appears to be a prudent, albeit less optimistic from a future price growth perspective, step.