Bitdeer Expands Bitcoin Self-Mining Amidst Cooling Rig Demand

Shifting Strategies in a Bull Market

In a strategic move that underscores the evolving landscape of the cryptocurrency mining industry, Bitdeer Technologies Group is intensifying its focus on self-mining operations. This decision comes at a time when the demand for mining rigs is experiencing a downturn, prompting hardware manufacturers to reassess their business models in the face of a bullish Bitcoin market. According to a report dated October 9, Bitdeer is increasingly leveraging its own equipment to mine Bitcoin, effectively positioning itself as a competitor to its own clientele who purchase these rigs. This pivot is not merely a stopgap measure but a calculated step towards establishing Bitdeer as one of the top five Bitcoin miners globally.

Recent filings from Bitdeer reveal a significant year-over-year expansion in its mining capacity as of August, signaling the company's commitment to scaling its operations. In August alone, Bitdeer successfully mined 375 BTC, placing it sixth on the global leaderboard, trailing behind industry giants such as MARA Holdings, IREN, Cango, CleanSpark, and Riot Platforms. This achievement underscores Bitdeer's rapid ascent in the competitive mining sector, as it continues to bolster its infrastructure to meet its ambitious goals.

Adapting to Market Dynamics

The broader trend within the industry sees hardware manufacturers like Bitdeer and Canaan adapting to the subdued sales of mining rigs by capitalizing on their own mining capacities. This shift is evidenced by Bitdeer's substantial increase in its proprietary hashrate, which is projected to nearly triple to 22.5 exahashes per second between December 2024 and July 2025. This strategic deployment of surplus inventory, which would traditionally be sold to customers, is now being utilized internally to enhance mining output.

Industry analysts, including Wolfie Zhao, have noted that large-scale miners are exercising caution regarding fleet expansion in the near future. This cautious approach is driven by the challenging economics of Bitcoin mining, exacerbated by the recent halving event in 2024 that reduced block rewards by half. As Bitcoin's value continues to soar, recently surpassing $126,000, miners are compelled to explore alternative avenues to sustain profitability.

Diversification and Innovation

In response to the tightening margins and increased network difficulty, several mining companies are diversifying their operations. By deploying hardware towards emerging workloads such as artificial intelligence and data center infrastructure, companies are tapping into new revenue streams. Notable examples include Hive Digital, IREN, and TeraWulf, which have ventured into AI hosting and high-performance computing services. This diversification not only mitigates the risks associated with crypto price volatility but also aligns with the growing demand for AI compute power.

The surge in AI compute demand, coupled with significant investments in data center infrastructure by major tech firms, presents a lucrative opportunity for miners to repurpose or upgrade their facilities. By leasing excess capacity to AI companies, miners can secure a more stable revenue stream, insulating themselves from the inherent volatility of the cryptocurrency market. This strategic pivot is indicative of the industry's adaptability and resilience in navigating the complexities of the digital economy.