Bitdeer Accelerates Self-Mining and AI Diversification Amid Cooling Rig Demand

Executive Summary

Bitdeer Technologies Group (BTDR) is strategically accelerating its Bitcoin self-mining operations while concurrently diversifying into artificial intelligence (AI) and high-performance computing (HPC) services. In August 2025, the company mined 375 BTC, marking an approximate 33% increase from July, and nearly tripled its proprietary hashrate to 22.5 exahashes per second (EH/s) by July 2025. This pivot is a direct response to a cooling demand for dedicated Bitcoin mining rigs and the increasingly challenging economic landscape for cryptocurrency miners.

The Event in Detail

Bitdeer reported substantial operational growth in August 2025, including the energization of 4.1 EH/s from its SEALMINER A1 rigs. A total of 27.8 EH/s in SEALMINER A2 rigs have been manufactured, with 18.0 EH/s specifically deployed for self-mining across U.S., Tydal, Norway, and Jigmeling, Bhutan sites, including 7.8 EH/s in August alone. The company anticipates mass production of SEALMINER A3 in late September or early October, and SEALMINER A4 is targeting an approximate chip efficiency of 5 joules per terahash (J/TH).

Beyond mining, Bitdeer is expanding its AI and HPC initiatives. Its neo cloud business, Bitdeer.AI, achieved an annualized run-rate revenue (ARR) of US$8 million from GPU cloud services in August, with significant growth projected for Q4. The company is in advanced negotiations for a HPC/AI site in Clarington, Ohio, and is actively planning and preparing for a U.S. manufacturing facility. Despite a delay in full energization at its Massillon, Ohio site to Q1 2026 due to transformer and labor issues, Bitdeer continues to expand its infrastructure, with 161 MW online in Tydal, Norway, and 367.5 MW online in Jigmeling, Bhutan.

Financially, Bitdeer reported self-mining revenue of US$59.3 million for Q2 2025, an increase from US$41.6 million year-over-year, driven by a 103.3% increase in average self-mining hashrate. The company recorded a net loss of US$147.7 million for the quarter, and held US$299.8 million in cash and cash equivalents as of June 30, 2025. Financing activities generated US$431.5 million, primarily from US$364.3 million in proceeds from convertible senior notes.

Market Implications

The strategic shift by Bitdeer and other hardware manufacturers like Canaan underscores a broader industry adaptation to weakening demand for mining rigs. Surplus inventory that would typically be sold to customers is now being deployed in-house for self-mining operations. This trend emerges amidst increasingly challenging mining economics, characterized by a record-high Bitcoin network difficulty of 136.04 trillion in September and falling hashprice, projected to decline further to $49 per petahash per day. The 2024 Bitcoin halving, which cut block rewards, has further exacerbated these pressures, compelling miners to diversify revenue streams.

Several prominent mining companies are actively pivoting to AI and data center infrastructure. Hive Digital Technologies, while increasing its Bitcoin mining capacity to 10.4 EH/s, is shifting most operations to AI. IREN Limited has seen its annual revenue from AI cloud services reach $26 million, with a substantial investment of $674 million in 12,400 new GPUs aiming for $500 million in annual sales by early next year, leveraging energy costs of $0.033 per kWh. Similarly, Core Scientific has announced a $1.2 billion expansion project for its Denton, Texas data center to support AI and high-performance cloud computing.

This diversification leads to heightened competition for essential resources. AI firms are often able to outbid Bitcoin miners for cheap, sustainable energy due to their higher revenue generation per kilowatt-hour, potentially leading to further industry consolidation and challenges for smaller mining operations.

Expert Commentary

Industry analysts note this strategic pivot by hardware makers. Wolfie Zhao, an analyst at The Miner Mag, indicated that large miners are expected to remain cautious regarding fleet expansion in the foreseeable future. The publication also highlighted that in both Canaan and Bitdeer's cases, "surplus inventory that once would have been shipped to customers is now being deployed in-house." This reflects a pragmatic move by companies like Bitdeer to compete with their own clients by leveraging their manufacturing capabilities for proprietary operations.

Broader Context

This industry transformation carries significant implications for the broader Web3 ecosystem and investor sentiment. The increasing influence of Big Tech and the concentration of hash power in larger, AI-focused mining firms raise concerns about the decentralization of the Bitcoin network. Studies suggest that the U.S. controls a substantial portion of the world's Bitcoin hash rate, potentially leading to regulatory vulnerabilities.

Legislative developments further underscore the evolving landscape. Draft legislation in the U.S. Senate, known as the Clean Cloud Act, proposes fees for data centers, including crypto mining facilities, that exceed federal emissions targets. The bill mandates an 11% annual reduction target in emissions, with penalties starting at $20 per ton of CO2e. This initiative aims to address environmental impacts from surging energy demand, which could account for up to 12% of total U.S. power demand by 2028, according to a U.S. Senate Committee on Environment and Public Works minority blog post. Such regulatory pressures, coupled with the economic realities of mining and the allure of AI revenues, are fundamentally redefining the business model of digital asset infrastructure operators, blurring the lines between traditional Bitcoin mining and high-performance computing services.