Despite the ongoing market downturn, Bitdeer, a prominent cryptocurrency mining company, has invested $4 million in Bitcoin.
In a tweet posted on February 28, the Singapore-based firm announced the purchase of 50 BTC at an average price of $81,475 per Bitcoin.
This latest acquisition brings Bitdeer’s total Bitcoin holdings to over 640 BTC, accounting for approximately 0.003% of Bitcoin’s total supply, according to data from BiTBO.
Bitdeer’s $4M Bitcoin Purchase
Bitdeer’s investment comes as the broader crypto market experiences significant turbulence.
Bitcoin’s price has slipped below $80,000, dropping to $79,000 at the time of writing. The total cryptocurrency market cap has also declined by over 8%, reflecting a broader downturn in major tokens.
Source: TradingViewDespite these bearish conditions, Bitdeer’s strategic acquisition is seen as an opportunity to stack BTC at a lower price.
Adding to its expansion efforts, Bitdeer recently acquired a 101-megawatt (MW) natural gas plant in Alberta, Canada, for $21.7 million.
The firm intends to repurpose the facility for Bitcoin mining and has an ambitious plan to scale operations up to 1 gigawatt (GW).
Additionally, Bitdeer has secured regulatory approval for a $30 million, 99-MW interconnection grid with the Alberta Electric System Operator, further bolstering its mining infrastructure.
Bitcoin Mining Industry Amid Market Volatility
Despite recent price struggles, Bitcoin mining revenue has remained relatively stable.
A report by TheMinerMag shows that mining revenue held steady at approximately $1.4 billion in January.
However, industry dynamics are shifting, with network hashrates fluctuating and public mining companies facing operational challenges.
Bitcoin’s network activity reached 780 exahashes per second (EH/s) in January, following sustained growth from 642 EH/s in September to 779 EH/s by December.
Notably, public mining companies once controlled 35% of total Bitcoin rewards, saw their market share decline to 30% amid operational curtailments.
Notably, Bitcoin holdings among public mining companies increased in January, reaching over 99,000 BTC by the end of the month.
Source: TheMinerMagThe Broader Crypto Market Crash and Institutional Influence
The crypto market downturn has been exacerbated by macroeconomic and institutional factors, leading to Bitcoin’s recent drop below $80,000.
Market sentiment remains bearish, with heightened selling pressure fueled by economic policy changes, institutional sell-offs, and security concerns within the crypto sector.
Former U.S. President Donald Trump’s recent announcement of 25% tariffs on imports from Mexico and Canada and an additional 10% tariff on Chinese goods has heightened investor anxiety.
Institutional activity has also contributed to Bitcoin’s price decline. BlackRock, one of the world’s largest asset managers, recently liquidated a significant portion of its cryptocurrency holdings.
Data from Arkham indicates that BlackRock offloaded 5,100 BTC (valued at $441 million) and 30,280 ETH (valued at $71.85 million) through Coinbase Prime, triggering a broader sell-off.
The Crypto Fear and Greed Index has plummeted to 10, reflecting extreme fear levels last seen in 2022.
Despite these bearish trends, some analysts remain optimistic about Bitcoin’s long-term trajectory.
Standard Chartered’s Geoffrey Kendrick has projected that Bitcoin could reach $200,000 by the end of 2025 and potentially hit $500,000 if institutional adoption continues at its current pace.
While short-term volatility remains a concern, the increasing involvement of major financial players could provide long-term stability to the market.
The market is currently grappling with multiple pressures, but strategic investments like Bitdeer’s Bitcoin acquisition show an open window to by low now.
Whether Bitcoin’s price will rebound soon remains uncertain, but major industry players continue to position themselves for future growth.
The post Crypto Miner Bitdeer Invests $4M in Bitcoin Amid Crypto Market Slump appeared first on Cryptonews.
