Bitdeer Boosts Bitcoin Stash Amid Market Slump, But Can It Stay Profitable?

•  Bitdeer boosts BTC reserves with a 50 BTC purchase at $81,475 per coin, despite market volatility and declining crypto prices.
•  Energy investments grow as Bitdeer acquires a 101 MW gas plant and secures a 99 MW grid project to scale mining operations.
• Financial strain rises with high mining costs, debt, and CEO Jihan Wu’s 10b5-1 plan to sell 4M shares, sparking mixed market reactions.

According to Bitcoin Magazine, Bitdeer Technologies (BTDR) has increased its Bitcoin holdings by purchasing 50 BTC at a mean price of $81,475 per token. The transaction brings its reserves to 855 BTC, equivalent to about $69 million. 

The move occurs as Bitcoin prices continue to plummet, with the leading cryptocurrency below $80,000. The broader crypto space is also down, having declined over 8% in market capitalization. Bitdeer shares also opened in the red, following the fall in the market.

Strategic Expansion and Energy Investments

Bitdeer is actively investing in mining infrastructure in addition to growing its Bitcoin treasury. It recently paid $21.7 million for a 101 MW natural gas facility in Alberta. With the ability to scale operations up to 1 GW, the business intends to use this facility for Bitcoin mining.

Additionally, Bitdeer obtained permission from the Alberta Electric System Operator to construct a 99 MW interconnection infrastructure. Its enlarged mining activities will be supported by data center capacity provided by the $30 million investment. The investment demonstrates the company’s efforts to increase energy security and mining efficiency.

Financial Performance and Challenges

However, despite its aggressive expansion, Bitdeer is facing rising operational costs. In Q4 2024, the company reported $69 million in total revenue. Out of this, $43.8 million came from proprietary and cloud mining operations.

Yet, increasing costs are impacting profitability. Bitdeer’s direct mining costs stood at $26.7 million, averaging $53,769 per Bitcoin mined. Additionally, fleet hash costs reached $35.1 per PH/s. The firm is also incurring additional expenses from rising debt and hardware development investments. These financial strains raise concerns about long-term profitability.

Market Sentiment and Future Outlook

Moreover, A 10b5-1 trading strategy has been established by CEO Jihan Wu to sell up to 4 million shares between March and June 2025. The market has responded to this move in a variety of ways. While some investors are concerned about possible stock dilution, others view it as a strategic liquidity measure. 

Furthermore, the company is heavily relying on its SEALMINER hardware. However, uncertainties around chip production and high development costs have created skepticism about future profitability.