Bitdeer increased bitcoin mining by 370% over the year: hash rate surged by 420%
May 2024 was a landmark month for Bitdeer: the volume of mined Bitcoin reached 921 BTC, a 370% increase from the 196 BTC recorded a year earlier. This impressive growth was made possible by an aggressive strategy of expanding computing power.
Bitdeer's own hash rate during this period grew by nearly 420%, from 13.6 EH/s to 70.2 EH/s. This indicates significant investments in equipment and infrastructure, allowing the company to outpace many competitors amid the tightening mining environment following the halving. Such rapid hash rate growth is a direct reflection of the transition to more efficient ASIC miners and the expansion of data centers.
Bitcoin Treasury Dynamics: The Accumulation Paradox
Despite the sharp increase in mining output, Bitdeer's Bitcoin treasury volume in May rose by only 98 BTC, reaching 171 BTC. For comparison, a year earlier this figure stood at 1,351 BTC. This apparent discrepancy is explained by the active sale of some mined coins to finance operational expenses and further scaling. The company appears to be prioritizing current liquidity over long-term accumulation, a typical strategy for aggressive players in the post-halving period.
Analytical Conclusion: A 420% increase in hash rate alongside an 8-fold reduction in treasury indicates that Bitdeer is reallocating resources to increase its network share rather than holding coins. In an environment of growing competition and declining profitability per unit of hash rate, such a strategy may be justified, but it carries risks: in the event of a sharp drop in Bitcoin's price, the company would be vulnerable, as it lacks a significant reserve of coins to cover losses. Investors should closely monitor the balance between production capacity and financial stability.