Bitdeer Invests $240M in TSMC Chips, Revolutionizing Crypto Mining Landscape

Key Points

• Bitdeer invests $240M in TSMC chips to boost its Bitcoin mining capabilities.
• CEO Jihan Wu is planning to sell up to 4 million Bitdeer shares between March and June 2025.

The Singapore-based technology group, Bitdeer, announced on Tuesday that it has invested $240 million in TSMC chips. A report from The Miner Mag suggests the company aims to achieve 40 EH/s by 2025 with its proprietary SEALMINER hardware.

Bitdeer’s Investment in Bitcoin Mining

Last quarter, Bitdeer spent $325 million in cash for operations, with a significant portion of this going to chipmaker TSMC. The company spent $190.6 million on the production of SEAL02 chips and invested an additional $52.8 million in the tapeout process for SEAL03, which includes risk wafers.

An increase in prepayments was also noted in the report. By the end of December 2024, Bitdeer had reserved $310 million for future expenses, a significant increase from the $97 million set aside the previous year. These payments are intended for the mass production of the SEAL02.

The company has ambitious plans for its SEALMINER hardware. It aims to boost its capabilities by 32 EH/s in 2025 and plans to mass-produce the SEALMINER A1 and A2 models. Bitdeer’s Chief Business Officer, Matt Kong, expressed confidence that the company could surpass its 40 EH/s goal, depending on TSMC’s delivery speed.

CEO’s Financial Moves and Market Response

While Bitdeer focuses on strategic growth, its CEO, Jihan Wu, is making significant financial moves. He has developed a 10b5-1 trading plan that will allow him to sell up to 4 million Bitdeer shares between March and June 2025, ensuring that the sales comply with SEC guidelines.

Despite these strategic moves, Bitdeer’s financial reports reveal high expenses. The company announced a total revenue of $69 million for Q4 2024, with $43.8 million coming from its proprietary and cloud mining businesses. However, rising costs are impacting profits.

Bitdeer spent $26.7 million on direct mining costs, averaging $53,769 per Bitcoin mined. The fleet hash cost was $35.1 per PH/s. Additional corporate and financial expenses have increased the company’s overall spending, primarily due to increasing debt and hardware development costs.

Investors are closely monitoring Bitdeer as the company heavily invests in its SEALMINER hardware. However, the high costs are raising questions about its long-term profitability. Wu’s stock sales and uncertainty around chip production have divided the market on Bitdeer’s future. Despite these positive moves, Bitdeer saw its stock drop by over 29% to $9.28.