Bitcoin Mining Giant Bitdeer Liquidates Entire Treasury, Signaling Major Strategic Shift in Crypto Mining Landscape

In a dramatic move that has sent shockwaves through the cryptocurrency mining sector, Singapore-based Bitcoin mining powerhouse Bitdeer has completely emptied its corporate Bitcoin treasury, reducing its holdings to absolute zero in a decision that industry analysts are calling both bold and potentially concerning.

The Complete Liquidation: What Happened?

According to Bitdeer’s latest operational update released on February 20, 2025, the company’s “pure holdings” of Bitcoin have officially reached 0 BTC, marking a complete departure from the traditional mining company strategy of maintaining substantial Bitcoin reserves on their balance sheets.

The numbers tell a stark story: during the reporting period, Bitdeer produced 189.8 BTC through its mining operations but sold every single coin immediately upon production. Additionally, the company liquidated its entire existing treasury reserve of 943.1 BTC, effectively wiping out any Bitcoin exposure on its corporate books.

This represents a significant acceleration from just one week prior, when Bitdeer still held 943.1 BTC in its treasury. On February 13, the company had sold 179.9 BTC out of 183.4 BTC mined that week, maintaining its treasury balance despite routine sales of newly mined coins.

Breaking from Industry Norms

Mining companies typically maintain a delicate balance between selling enough Bitcoin to cover operational expenses—including electricity costs, hosting fees, and equipment purchases—while retaining a portion of their holdings to benefit from potential price appreciation. This strategy allows miners to hedge against Bitcoin’s notorious volatility while still participating in potential upside.

Bitdeer’s complete liquidation represents a departure from this conventional approach. Industry experts note that while selling newly mined Bitcoin is standard practice, completely draining treasury reserves is far less common and could indicate several strategic considerations.

The Timing: Debt Raise and Market Conditions

The treasury liquidation announcement comes on the heels of Bitdeer’s revelation that it plans to raise $300 million through a convertible senior note offering, with an option to expand the sale by an additional $45 million. The notes, which mature in 2032, can later be converted into company stock, cash, or a combination of both.

This capital raise effort, announced on February 19, 2025, coincided with a sharp drop in Bitdeer’s share price, which fell significantly following the announcement. The company stated that the funds will support data center expansion, AI cloud growth, mining hardware development, and general corporate needs.

Bitdeer’s Evolution Under Jihan Wu

Founded by Jihan Wu, the former co-founder of Bitmain—one of the world’s largest cryptocurrency mining hardware manufacturers—Bitdeer has been strategically evolving its business model in response to changing market conditions. The company has been expanding its self-mining operations as demand for its mining hardware weakens, increasingly using its own rigs to mine Bitcoin rather than selling them to customers.

This shift toward self-mining represents a significant strategic pivot, as Bitdeer seeks to capture more value from its hardware production capabilities by operating the equipment itself rather than relying solely on hardware sales.

Broader Industry Context: The AI Pivot

Bitdeer’s treasury liquidation and capital raise occur against a backdrop of fundamental transformation in the Bitcoin mining industry. Following the April 2024 Bitcoin halving event, which reduced mining rewards by 50%, many mining companies have been forced to explore alternative revenue streams to maintain profitability.

The industry is witnessing a massive pivot toward artificial intelligence and high-performance computing (HPC). Several major players have already made significant moves:

• MARA Holdings purchased a majority stake in French computing infrastructure firm Exaion, moving deeper into artificial intelligence and cloud services. The deal gives MARA France a 64% ownership position while energy company EDF remains a minority shareholder and customer.

• HIVE Digital Technologies, Hut 8, TeraWulf, and IREN are repurposing facilities and energy infrastructure for data-center use, combining Bitcoin production with AI and HPC revenue streams.

• CoreWeave has fully transitioned into an AI infrastructure provider, abandoning its crypto mining roots entirely.

This hybrid model allows mining companies to leverage their existing infrastructure—particularly their access to cheap, reliable energy and data center facilities—to serve the booming AI compute market while maintaining some exposure to Bitcoin mining.

Market Implications and Analyst Reactions

The complete liquidation of Bitdeer’s Bitcoin treasury has sparked intense debate within the cryptocurrency community. Some analysts view it as a prudent move to strengthen the company’s balance sheet ahead of its ambitious expansion plans, particularly into AI and cloud computing.

Others see it as a potential red flag, suggesting that Bitdeer may be losing confidence in Bitcoin’s near-term price prospects or facing liquidity pressures that necessitate converting all BTC holdings to fiat currency.

The timing is particularly noteworthy given that Bitcoin’s price has shown relative strength in early 2025, trading in the $40,000-$50,000 range after recovering from the post-halving adjustment period. This makes Bitdeer’s decision to sell all holdings—including its established treasury—appear especially aggressive.

Operational Context: Mining Difficulty and Market Conditions

The treasury liquidation comes as the broader mining industry shows signs of recovery. Bitcoin mining difficulty rebounded by 15% as US miners recovered from winter outages, indicating improving operational conditions for mining companies.

However, the post-halving environment has created tighter margins across the industry, with many miners reporting reduced profitability. This challenging environment has accelerated the industry-wide pivot toward AI and alternative revenue streams.

Future Outlook for Bitdeer

With its Bitcoin treasury now at zero, Bitdeer appears to be positioning itself for aggressive expansion into new markets, particularly AI and cloud computing. The $300 million convertible debt raise provides substantial capital for this transformation, though the market’s negative reaction to the announcement suggests investors may have concerns about dilution or the company’s strategic direction.

The complete liquidation of Bitcoin holdings could be interpreted as Bitdeer preparing for a fundamental business model transformation, where cryptocurrency exposure becomes secondary to AI and cloud computing revenue streams.

Industry-Wide Implications

Bitdeer’s move may signal a broader trend in the mining industry, where companies increasingly view Bitcoin as a means to an end rather than a core asset to be held long-term. As mining margins compress and AI opportunities expand, more companies may follow Bitdeer’s lead in reducing their Bitcoin exposure while pivoting toward alternative revenue streams.

This transformation could fundamentally alter the relationship between Bitcoin mining companies and the cryptocurrency they produce, potentially reducing long-term price support that has historically come from mining companies holding substantial BTC reserves.

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