Talk about buying the dip. The purchases came right as the company released some seriously ugly financials. Q4 revenue tanked to $69 million, down from $115 million a year earlier. Losses? A staggering $531.9 million. Investors weren’t thrilled – the stock plummeted 55% after earnings. Ouch.
Yet here’s Bitdeer, casually dropping millions on Bitcoin like it’s no big deal. The timing is either brilliant or crazy, depending on who you ask. CEO Jihan Wu clearly believes in Bitcoin’s future, even as he plans to unload up to 4 million personal shares between March and June. Nothing says “mixed signals” quite like that.
Investing millions in Bitcoin while selling personal shares? That’s the definition of mixed signals.
Meanwhile, the company’s pushing ahead with ambitious mining plans. They’re targeting 40 EH/s of mining capacity by the end of 2025 and mass-producing their own SEALMINER hardware. The A2 models are set to hit production in March, with 28 EH/s expected to come online this year. The company’s self-mined Bitcoin reached 126 BTC in their latest operations report, though this marked a decrease due to curtailments in Bhutan. The proprietary mining operation generated $43.8 million in revenue last quarter despite market challenges.
Bitdeer’s not alone in its Bitcoin enthusiasm. Tether, their second-largest shareholder with a 25% stake, is surely watching closely. The company also just wrapped up a $9 million share buyback and launched another $20 million repurchase program running through February 2026.
The market actually liked something about all this – shares ticked up 0.6% in after-hours trading following the Bitcoin buy announcement. Small victories, right?
With the Bitcoin halving event approaching, Bitdeer’s clearly betting big on crypto’s future. Whether that’ll offset their massive quarterly losses remains to be seen. Bold move or desperate gamble? Only time will tell. The upcoming April 2024 halving will reduce miners’ rewards from 6.25 to 3.125 bitcoins per block, potentially pressuring Bitdeer’s revenue even further.
