Bitdeer is advancing its mining operations with a bet on high-powered TSMC chips.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
On Tuesday, popular Singaporean technology group Bitdeer announced it had paid chip giant TSMC $240 million. According to a report from The Miner Mag, the firm is targeting 40 EH/s by 2025 with its in-house SEALMINER hardware.
The last report shows that Bitdeer used $325 million in cash for operations last quarter. Notably, a big part of this capital went to chipmaker TSMC. This is because Bitdeer paid $190.6 million to produce SEAL02 chips. The company also injected another $52.8 million toward the tapeout process for SEAL03, which includes risk wafers.
The report also disclosed an increase in prepayments. For context, at the end of December 2024, Bitdeer had $310 million set aside for upcoming expenses, compared to $97 million the year before. The company said these payments are for SEAL02 mass production.
Bitdeer has big plans for its SEALMINER hardware. According to the report, the company is targeting a 32 EH/s boost in 2025 and plans to mass-produce the SEALMINER A1 and A2 models.
In addition, Matt Kong, Bitdeer’s Chief Business Officer, believes that, depending on how quickly TSMC delivers, the company could exceed its 40 EH/s goal.“This target does not factor in additional wafer allocation anticipated from TSMC for SEAL02 or SEAL03, which could increase the Q4 2025 target beyond 40 EH/s, depending on the manufacturing schedule,” Matt Kong said in a statement.
While the technology firm pursues strategic growth plans, Bitdeer’s CEO, Jihan Wu, is also making important financial moves. For instance, Wu has developed a 10b5-1 trading plan. This will allow him to sell up to 4 million Bitdeer shares between March and June 2025. Similarly, they will make sure that the sales follow SEC guidelines.
Meanwhile, Bitdeer’s financial reports show the company is incurring large expenses. The technology group announced $69 million in total revenue for Q4 2024. Notably, $43.8 million came from its proprietary and cloud mining businesses. However, rising costs are eating into 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, mainly due to rising debt and hardware development expenses.
Still, investors are watching Bitdeer closely. The company is betting heavily on its SEALMINER hardware, but the high costs raise questions about its long-term profitability. Wu’s stock sales and uncertainty around chip production have divided the market on Bitdeer’s future.
Despite the seemingly positive move, Bitdeer saw its stock drop by over 29% to $9.28.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
