Bitcoin Mining Stocks Plunge: Bitdeer Posts $267 Million Quarterly Loss, Shares Plummet 20%

Mining is tough, really tough. When Bitdeer’s quarterly financial report came out, it was like a bucket of cold water dumped on the entire mining industry—a net loss of $267 million for the quarter, a staggering 422% increase compared to the same period last year. Shareholders couldn’t hold on, and on Monday the stock was hammered down nearly 20%, wiping out all the gains from the previous month.

Why is mining so difficult?

The core issue comes down to two words: no money.

After last year’s Bitcoin halving, the reward for validating transactions was slashed from 6.25 BTC to 3.125 BTC, cutting miners’ revenue sources in half overnight. But costs like electricity, equipment, and operations haven’t decreased—in fact, they’re rising due to increased industry competition. As a result, the gross margin for many mining companies has dropped from double digits to single digits, with some even operating at a loss.

Survive or transform?

Interestingly, there’s a new trend in the mining industry—a large number of mining companies are shifting to AI. Some leading mining firms are redirecting their computing power to AI training, or even pivoting to manufacture AI chips. The announcement of these moves has triggered a wave of panic selling in the industry.

Bitdeer is also adjusting its strategy, starting this August to focus on mining equipment manufacturing and investing in U.S. mineral resources, clearly searching for new growth points. But it’s obvious the market is still skeptical.

Bottom line: With the dual pressures of Bitcoin halving and persistently high electricity costs, the profit margin of pure mining operations has been squeezed very thin. Whether a transformation can save the day depends on execution going forward.