Bitdeer Expands Bitcoin Holdings Amid Market Challenges and Strategic Moves

5 months ago 40

March 1, 2025 by Bena Ilyas

Bitdeer acquired 100 BTC in two transactions, spending $8.59 million amid market volatility.
Q4 2024 revenue fell to $69 million, with net losses surging to $531.9 million due to Bitcoin halving and rising hash rates.
Bitdeer’s stock dropped 55%, contributing to $13 billion in industry losses.

Singapore-based Nasdaq-listed mining firm Bitdeer Technologies Group has made significant Bitcoin purchases amid a turbulent financial landscape. The company acquired 100 BTC in two separate transactions this week, demonstrating confidence in Bitcoin despite recent market downturns.

On February 25, the same day it released its Q4 2024 financial report, Bitdeer bought 50 BTC at $90,280 per coin. Two days later, on February 27, the firm added another 50 BTC at $81,475 per coin, bringing its total investment to $8.59 million. Before these acquisitions, Bitdeer held 911 BTC as of February 23.

In addition to expanding its Bitcoin holdings, Bitdeer announced the completion of a $9 million share buyback program on February 28. The company also launched a new $20 million share repurchase program, set to run until February 28, 2026. The repurchases will be financed using the company’s existing cash reserves, signaling confidence in its long-term value despite recent financial struggles.

Financial Performance: The Impact of the Bitcoin Halving

Bitdeer showed strong revenue growth in early 2024, with Q1 revenue reaching $119.5 million, up from $72.6 million in Q1 2023. It also posted a net income of $600,000, a sharp turnaround from a $9.5 million net loss the year before.

However, the Bitcoin halving event in April 2024, which slashed mining rewards from 6.25 BTC to 3.125 BTC per block, put significant pressure on the industry. It was reflected in Bitdeer’s Q3 revenue drop to $62 million, down from $87.3 million in the previous year. The downward trend continued in Q4 2024, with revenue falling to $69 million, compared to $114.8 million in Q4 2023.

Despite these declines, the mining company’s net loss surged to $531.9 million in Q4 2024, a drastic increase from $5 million in Q4 2023. Chief Business Officer Matt Kong attributed these losses to the halving of Bitcoin, rising global hash rates, lower hosting revenue, and one-time R&D costs.

Bitcoin Mining Woes as Bitdeer Stock Plummets 55%

The broader crypto and stock markets have seen a recent slump, with Bitcoin mining firms bearing the brunt of the downturn. The company’s stock plunged 55%, leading to industry losses as the sector shed $13 billion in value.

Much of Bitdeer’s losses are linked to research and development (R&D) costs, particularly its SEAL02 ASIC chip project. The company first unveiled a roadmap for custom mining hardware in June 2024, acquiring chip designer DesiweMiner for $140 million in stock and integrating its team into Bitdeer’s ASIC division.

Bitdeer had already begun mass production of its first-gen SEAL01 chip in Q4 2024, while SEAL02 was slated for release in Q3 2024. SEAL03 was released in Q4 2024, SEAL04 in Q2 2025, and full-scale delivery was expected by Q4 2025.

Currently, 1.38 million units of the SEAL A2 model have been reserved, with shipments scheduled to begin in March 2025.

Adding to the company’s headlines, Bitdeer CEO Jihan Wu confirmed a plan to sell up to 4 million ordinary shares between March and June 15, 2025. The plan was finalized in December and follows SEC Rule 10b5-1 on insider trading compliance.

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