Bitdeer’s Share Buyback and Increased Interest in Digital Assets :
Bitdeer Technologies Group, the Singapore-based crypto mining platform controlled by mogul Jihan Wu, has witnessed a significant surge in its shares over the past month. The company’s announcement of a share buyback and the renewed interest in digital assets by traditional financial firms contributed to this surge.
Additionally, on June 16, Bitdeer declared its plan to repurchase up to $1 million worth of its Nasdaq-listed stock. This strategic move aligns with the recent boost the crypto market has received from Wall Street heavyweights, who are once again investing in the highly-volatile industry despite the challenges posed by company fallouts and regulatory pressure.
Bitcoin’s Impact and Bitdeer’s Market Position
Bitcoin, the largest cryptocurrency by market cap, experienced a significant upswing, reaching its highest level in a year at over $31,000. Recent developments in the crypto industry influenced this surge, although it remains below its all-time peak of nearly $69,000 in November 2021.
Furthermore, Bitdeer’s market capitalization reached almost $1.3 billion at Friday’s market close. The company, which started trading on the Nasdaq stock exchange in April after a long-delayed merger, holds a prominent position as one of the largest crypto miners in terms of computer power.
Bitdeer, a spinoff from Bitmain Technologies, operates multiple mining data centers globally, including in the U.S., Norway, and soon in Bhutan, where it recently partnered with the government to establish a green crypto mining fund.
Bitdeer Reports Decline in Revenue, Reflecting Industry Struggles
Despite the rebound of bitcoin and other cryptocurrencies, the energy-intensive crypto mining industry continues to face challenges, particularly concerning high electricity prices. This was evidenced by the bankruptcy filing of Texas-based bitcoin miner Core Scientific.
Bitdeer also encountered a decline in revenue in the first quarter, reflecting the overall industry’s struggles. Nonetheless, the company remains optimistic about the future of the crypto market.