Bitdeer sells entire Bitcoin treasury to fund AI expansion
Singapore-based crypto mining company Bitdeer has sold all of its Bitcoin holdings as it redirects funds toward artificial intelligence and high-performance computing projects, Qazinform News Agency reports.
On February 20, the company announced that it no longer holds any Bitcoin in its corporate treasury, excluding customer assets. Bitdeer said it sold its most recent production of 189.8 BTC and reduced its overall holdings by 943.1 BTC. The move marks a shift away from the common industry practice of keeping mined coins on the balance sheet.
The decision comes amid growing pressure on mining profits. Bitcoin network difficulty recently increased by 14.7%, the largest jump since May 2021, making it harder and more expensive to mine new coins. As a result, mining revenues have fallen across the sector.
“Our decision to sell Bitcoin should not be a concern for the broader market. We are currently evaluating multiple non-binding powered land acquisition opportunities, and we believe it is prudent to prepare liquidity now. Our hash rate will continue to grow, and we will continue to mine more Bitcoin for the interest of our shareholders,” the company said in a social media post.
Bitdeer is also raising $325 million through a private offering of convertible senior notes. The funds will be used to restructure debt and support expansion into AI cloud services, proprietary mining equipment, and new data center infrastructure.
Earlier, South Korean crypto exchange Bithumb announced that it had recovered $166 million worth of bitcoins mistakenly distributed to users during a promotional event.