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Bitdeer, a leading Bitcoin (BTC) mining firm, has liquidated all of the 1,132 BTC in its treasury. The total value of the Bitcoin stash is approximately $110 million at the current market price. The decision to dump its Bitcoin stash was a result of low mining margin, which has dropped below 20%.
Bitdeer capital rotation targets AI cloud
In an update on X, Bitdeer explained that the firm’s decision should not trigger panic on the broader cryptocurrency market. It clarified that Bitdeer is looking to buy land with electricity access and establish new mining data centers. Hence, the sale of Bitcoin remains one of its options to raise funds for such a move.
Bitdeer is looking to redirect the capital and focus on data center expansion, artificial intelligence (AI) cloud growth and corporate needs.
Generally, on the broader cryptocurrency market, when a Bitcoin mining company dumps massive amounts of BTC, it sparks concerns. Notably, market participants expect the price to crash or assume that the firm is in financial trouble.
Bitdeer’s update is therefore timely, as it helps to reassure its investors that the mining company is not in any crisis. It is also beneficial to the broader crypto community, who might be triggered to engage in panic-selling, a development that could increase sell pressure on a volatile market.
With Bitdeer clarifying its purpose, investors and market participants could focus on other concerns. The mining firm assured that it "will continue to mine more Bitcoin for shareholders." The firm is maintaining a long-term bullish stance on the development.
It claims that its business model is to sell Bitcoin now and fund its planned expansion. Once it completes its expansionary move, it will continue to mine more Bitcoins for its investors. It suggests that in the long term, this dumping of Bitcoin would result in Bitdeer being able to mine even more BTC.
Bitcoin slides below $65,000 as macro uncertainty weighs
Despite these assurances, in the last 24 hours, Bitcoin has lost over 3.2% of its value. The coin dropped from a daily peak of $68,235.23 to a low of $64,350.41. As of this writing, Bitcoin exchanged hands at $65,725.09, which represents a 3.37% decrease within the period.
The asset’s trading volume is up by 104.92% at $36.02 billion, suggesting possible accumulation by a segment of the market in spite of the bearish price outlook.
With Bitcoin plunging below the $65,000 support level, this has raised concerns about whether the next support of $45,000 could be threatened. The latest sharp drop has been attributed to the uncertainty around U.S. tariffs.
Vladislav Sopov
Dan Burgin