Singapore-based Bitcoin miner Bitdeer has liquidated its entire BTC treasury, abandoning the industry’s standard holding strategy.
This drastic move comes as plunging mining profitability forces the company to restructure its debt and accelerate its AI pivot.
Why did this Bitcoin Miner dump its Holdings?
On February 20, the crypto mining company disclosed it held zero Bitcoin, completely draining its reserves. Notably, this excludes its customer deposits.
The firm confirmed that it had sold its entire recent output of 189.8 Bitcoin, and posted a massive net reduction of 943.1 Bitcoin.
Indeed, this aggressive sell-off highlights a deepening crisis for operators caught in a severe margin squeeze.
Following a temporary reprieve caused by US winter storms that knocked domestic mining fleets offline, the Bitcoin network experienced a rapid V-shaped recovery.
This week, network difficulty surged 14.7%. This is the largest upward adjustment since May 2021 and erases the operational relief miners experienced earlier in the year.
Consequently, mining profitability, measured by hashprice, plummeted to under $30 per petahash per day. The critical metric now sits inches above its all-time low, pushing production costs higher.
To navigate the crunch, Bitdeer is turning heavily to Wall Street to fund its pivot into artificial intelligence.
On February 20, the company announced an upsized $325 million private sale of convertible senior notes.