Bitdeer Technologies has made headlines with a jaw-dropping move—liquidating its entire Bitcoin treasury. As of February 20, the Nasdaq-listed cryptocurrency miner announced it holds no Bitcoin on its balance sheet, having sold off approximately 2,000 BTC since the start of the year.
The final stage of this massive divestment involved selling 943.1 BTC from its reserve, alongside all 189.8 BTC produced during the last week of operation. This comprehensive liquidation reveals significant shifts in the mining landscape and the company’s strategic decisions.
The sell-off followed a $325 million convertible notes offering and a $43.5 million equity placement aimed at financing the company’s venture into artificial intelligence and data center expansion. Clearly, the firm is pivoting towards new growth avenues amidst the challenging conditions prevailing in the Bitcoin mining sector.
Despite now holding zero Bitcoin, Bitdeer has emerged as the largest publicly traded self-miner in terms of hashrate, boasting an impressive 63.2 EH/s. This is a notable achievement in the world of crypto mining, especially when considering that competitors like Marathon Digital hold around 53,250 BTC and Riot Platforms maintain about 18,000 BTC in reserve.
But the question looms: Why did Bitdeer opt to sell off all its Bitcoin? The answer lies in the harsh economic reality of mining profitability. Recent adjustments to Bitcoin network difficulty have surged by 14.7%, marking the largest increase since May 2021. This spike, following a brief reprieve caused by extreme winter weather in the U.S. that disrupted mining operations, has resulted in hashprices plummeting to levels near all-time lows, now below $30 per petahash per day.
Recent financial performance insights from Bitdeer reveal deteriorating margins, with gross margins dropping from 7.4% a year ago to just 4.7% in Q4 2025. Operating in such thin margins while trying to build a treasury is virtually impossible, compelling the firm to liquidate its holdings.
The firm has not clarified whether its zero Bitcoin strategy is a fixed approach or a temporary cash management tactic linked to its recent fundraising efforts. However, its aggressive pivot towards AI seems unequivocal.
On the very day of its treasury announcement, Bitdeer disclosed a $325 million sale of convertible senior notes, planning to push out its debt obligations while allocating a substantial chunk of the proceeds towards high-performance computing and proprietary ASIC chip development.
Interestingly, while exiting from Bitcoin reserves, Bitdeer has surpassed Marathon Digital, securing its position as the largest self-miner globally. Its rapid ascent in hashrate places it at the forefront of the industry, illustrating the complex dynamics at play in the mining arena.
Compounding these challenges, Bitdeer is currently entangled in a securities class-action lawsuit in the Southern District of New York, with allegations concerning misrepresentations regarding its SEAL04 chip timeline. This adds another layer of scrutiny as the company navigates its strategic shifts.
As Bitdeer turns its back on Bitcoin, the implications of this shift extend beyond its balance sheet, prompting the crypto community to consider what this means for the future of mining and the broader cryptocurrency market.
