Bitdeer takes off: bitcoin mining increased by 370% year-over-year, hash rate up nearly 420%
Bitdeer is demonstrating an impressive leap in the mining sector. In May 2024, its bitcoin mining volume reached 921 BTC, a 370% increase from 196 BTC a year earlier. These are not just numbers—they reflect the aggressive scaling strategy the company is implementing amid growing competition.
Hashrate Growth and Infrastructure Investments
Bitdeer's proprietary hashrate increased by nearly 420% year-over-year, from 13.6 EH/s to 70.2 EH/s. This surge was made possible by the active commissioning of new capacities, including the launch of modern ASIC miners and the expansion of data centers. The company is clearly betting on vertical integration and control over production resources, allowing it to outpace average market growth rates.
Treasury: The Paradox of Reduction
An interesting point: despite the growth in mining output, Bitdeer's bitcoin treasury increased by only 98 BTC in May, reaching 171 BTC. A year ago, this figure stood at 1,351 BTC. This suggests that the company is likely actively selling mined cryptocurrency to fund operational expenses or further investments in equipment. Such a strategy is typical for fast-growing miners who prioritize liquidity over accumulating reserves.
My analysis: A 370% increase in mining output and a 420% rise in hashrate are undeniable successes, but an 87.3% reduction in the treasury over the year indicates a high dependence on current market prices. Bitdeer is playing the long game, but for now, the focus is on volume rather than storage. If bitcoin's price continues to rise, this model will pay off. However, in the event of a market correction, the company could find itself in a vulnerable position due to a lack of reserves.