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It reports that Singapore-based Bitcoin mining company BitDear has liquidated its entire Bitcoin hoard, abandoning the industry’s standard holding strategy.
This radical step was taken as the profitability of the mine decreased dramatically, forcing the company to restructure its debt and accelerate its movement towards artificial intelligence.
Why did this Bitcoin mining company sell its holdings?
The crypto mining company announced on February 20 that it no longer owns Bitcoin, as it has completely liquidated all its reserves. It should be noted that this does not include customer deposits.
The company has confirmed that it has sold all of its recent production of 189.8 BTC, recording a huge net decrease of 943.1 BTC.
This heavy sale reinforced the crisis of operators who were caught in the grip of severe margin pressures.
The Bitcoin network saw a sharp V-shaped recovery after local mining fleets were temporarily halted due to winter storms in the United States, as shown in Report on Bitcoin hash rate recovery.
The network’s difficulty increased this week by 14.7%, the biggest increase since May 2021, and eliminated the operational relief that miners enjoyed earlier in the year.
As a result, mining profitability, measured by hashprice, fell to less than $30 per petahash per day. This crucial indicator is at levels that touch an all-time low, which has pushed up production costs.
Bitdeer is looking for funding to move towards artificial intelligence
To face the pressing crisis, BitDir relies heavily on Wall Street for funding Its transition to artificial intelligence.
On February 20, the company announced Leveraged private sale of $325 million of convertible notes to principal investors.
This sale is scheduled to close on February 24, and includes an option for the initial purchasers to purchase an additional $50 million worth of notes.
Classify the financial maneuver as a strong defensive measure. Bitdeer will allocate $138.2 million to repurchase its existing 5.25% convertible bonds due 2029, effectively extending its term by restructuring its debt.
Another $29.2 million was set aside to fund limited call transactions, an insurance policy that protects existing shareholders from dilution if the stock price rises.
The remaining returns indicate a clear strategic deviation from pure cryptocurrency mining.
BitDir said it will use the new capital to expand its business in high-performance computing and AI-based cloud services, develop ASIC platforms for cryptocurrency mining, and expand the financial data center.
At the same time, the disinvestment of the treasury and the strategic change occurred simultaneously with a paradoxical stage of the industry: Bitdire is now the largest publicly traded automining company in the world.
Recent reports have shown that BitDir’s self-managed hash rate has reached 63.2 EH/s, surpassing rival Marathon Digital’s 60.4 EH/s. This makes the Singaporean company the largest publicly traded company with the highest self-managed Bitcoin hashrate.
