Bitdeer Liquidates Bitcoin Holdings to Fund AI Expansion
Bitdeer, a Singapore-based company specializing in bitcoin mining and AI infrastructure, has sold all its bitcoin holdings to fund a significant move into AI data centers. The company reported zero bitcoin holdings as of February 20, diverging from the traditional strategy of maintaining bitcoin as a treasury asset. Instead, Bitdeer is converting its bitcoin production into liquidity to support its ongoing expansion.
This strategic shift aligns with Bitdeer’s recent financial maneuvers, including a $325 million convertible notes offering and a $43.5 million equity raise. These funds are earmarked for expanding their data center capabilities and boosting AI cloud growth. The company’s operational metrics remain strong. Bitdeer mined 668 bitcoin in January alone, a 430% increase from the previous year, and has increased its self-mining hash rate to 63.2 exahashes per second.
Bitdeer’s pivot towards AI infrastructure includes deploying NVIDIA GB200 NVL72 systems in Malaysia and converting several sites in the U.S. and Europe from crypto mining to AI data centers. The company reassures that the decision to liquidate bitcoin should not alarm the broader market. It emphasizes the importance of liquidity for potential land acquisitions while continuing to increase its hash rate.
Analyst Insight: Bitdeer’s shift from bitcoin hoarding to liquidity generation reflects a growing trend among miners to diversify and prioritize infrastructure over reserves.
As Bitdeer focuses on AI expansion, the broader implications for the crypto industry remain to be seen. Will more miners follow suit in prioritizing infrastructure over traditional bitcoin reserves, or will they maintain bitcoin as a core asset?
Sources: CoinDesk