Author: Liam 'Akiba' Wright

Translated by: Deep Tide TechFlow

Deep Tide Guide: Based on hash rate, Bitdeer is the largest Bitcoin miner in the United States. This week, it completely cleared its BTC treasury — down from 2,017 coins to zero. Meanwhile, the company simultaneously completed a $325 million convertible note financing and a stock issuance. This is not an isolated event: hashprice has approached the breakeven point for many miners, and a structural shift from "coin-hoarding machines" to "operational machines fueled by BTC" is quietly occurring.

The full text is as follows:

Bitdeer, the largest Bitcoin miner in the U.S. by hashrate, emptied its BTC ledger this week.

The company's BTC treasury balance currently stands at 0 — it sold 189.8 newly mined BTC and extracted 943.1 BTC from reserves to sell together.

Mining companies holding Bitcoin is like pressure in a pipeline: part of it flows out as revenue, while part remains in the treasury as a store of value and cushion, with the condition of the cushion reflecting management's judgment about upcoming road conditions.

Bitcoin hashrate ranking

Source: bitcoinminingstock.io

Bitdeer’s cushion has reached zero all at once, raising the question: what is the urgent need for cash for this miner? How does it view the next quarter?

In mining, bills come in fiat currency— electricity, custodial fees, salaries, parts—while revenue comes in Bitcoin. Therefore, each treasury policy is essentially a statement about timing, risk, and capital acquisition capability.

This weekly report also carries a second layer of meaning. Bitdeer’s balance sheet still showed a significant BTC holding at the end of the year — in a December 31, 2025 announcement, the company disclosed "holding Bitcoin: 2,017 coins."

From a four-digit holding to a weekly update showing zero, this reflects the rhythm, cash conversion, governance model, and the entire story of the constantly reshaping business of mining.

Overall, this weekly report presents a company that actively chooses certainty—transforming a shrinking reserve (in dollar terms) into operational liquidity, adjusting its risk exposure to be closer to that of a utility company rather than a coin-hoarding account. This is where the term "capitulation" comes in: it describes what happens when profit margin indicators approach the red line— the treasury shifts from strategic reserves to fuel.

Based on weekly data, Bitdeer sold about 1,132.9 BTC (943.1 BTC from reserves plus 189.8 newly mined BTC). Estimating within the range of $60,000 to $70,000 shown on Bitdeer's mining insights page, this represents about $68 million to $79 million in liquidity—enough to make a significant impact on a miner’s cash cycle and enough to signal a change in posture.

The numbers of the treasury meet the financing calendar

This BTC sale coincides with what appears to be a deliberate restructuring move in the capital market. Bitdeer announced it completed the pricing of $325 million of upgraded, 5.00% convertible senior notes maturing in 2032, alongside a registered direct offering priced at $7.94 per share.

The expected uses of funds include: hedging option trades (capped call transaction), repurchasing $135 million of 2029 convertible notes, and funding data center expansion, HPC and AI operations, ASIC development, and operational funds.

This series of actions tells you: where the money wants to go, and what risks the company is willing to take along the way.

Convertible notes and hedging options are financial pipelines—they wrap volatility, trading upward space for survival space, with the goal of maintaining operations when revenue breathes. A miner completing financing and debt restructuring while emptying its BTC accounts signals a preference for controlled financing channels, favoring the construction of infrastructure capable of continuously generating orders, computing power, and contracts.

This logic aligns with the larger narrative for 2026—miners are increasingly positioning themselves as "energy to computing power" companies, with Bitcoin as one revenue line and AI and HPC as another capital-intensive destination.

VanEck's outlook for 2026 believes that this transformation in mining brings both opportunities and pressures, forecasting that as balance sheets absorb growing costs, industry consolidation will follow.

Hash price sets the pace, forward curves set expectations

Mining failures rarely end with a bang; rather, they are a series of gradual decisions that coalesce into a major decision. The industry’s profit margin indicator is hashprice — the revenue per unit of computing power — and recent readings explain why the treasury must liquidate.

Luxor's latest hashrate index report places the USD hashprice at $34.05 per PH per day, a week-over-week decrease of about 4%, noting that for many miners, the current hashprice is near the breakeven point, depending on their respective cost structures and types of mining machines.

Forward market pricing shows an average of about $28.73 per PH per day over the next six months—this lower expectation pulls down every treasury policy like gravity.

Difficulty is the second knob; it adjusts the denominator and can swing quickly when weather, downtime, or power restrictions take mining machines offline.

Bitcoin has experienced a record 11.16% difficulty reduction to 125.86T, followed by a record rebound to 144.40T. The next adjustment is expected to lower in early March. For miners planning capital expenditures and liquidity on a weekly and monthly basis, this pattern acts like a whip reaction.

Bitdeer’s own dashboard reflects the same situation—Bitdeer lists network hashrate at about 1,022 EH/s, with difficulty around 144.4T, showing "earnings per terahash per day" at $0.0289. Miners must survive within the space defined by these numbers and choose where to absorb volatility: the treasury, debt pile, or growth plan.

Capitulation, first in accounting form, then in consolidation form

When traders talk about "capitulation," they imagine a waterfall—an abrupt cleansing that brings the books to zero. Capitulation in mining often occurs in the form of accounting entries and financing terms: selling coins, cutting reserves, convertible note pricing, issuing additional shares, and weaker operators being forced to merge or shut down.

Bitdeer's actions this week align with a narrative of using cleared treasury as a financing bridge—converting BTC into cash to support larger scale builds and restructuring of the debt structure. This includes directing proceeds into hedging option trades, repurchasing existing convertible notes, and funding data centers, HPC, AI, ASIC development, and operational funds. Companies acting according to this script view Bitcoin as inventory that can be transformed into concrete, chips, and contracts.

Luxor hashrate index forward market pricing is about $28.73 per PH per day, indicating that margin pressure will persist, and this pressure often pushes miners toward one of three exits: selling BTC, selling equity, or selling the company itself.

VanEck’s outlook describes 2026 as a consolidation phase, directly pointing to financing choices—dilutive convertible notes, treasury sales during price weaknesses, and operators capable of simultaneously running Bitcoin mining and AI computing versus operators only able to maintain one.

This is why Bitdeer's clearing of reserves could be seen as a canary in the coal mine. This event is both a case study and a warning label. Miners can maintain exposure to Bitcoin through continuous operations while holding fewer actual tokens; they can also re-position themselves as infrastructure companies, transferring Bitcoin price risk to be managed elsewhere.

If the entire industry replicates this transaction, the number of miners hoarding BTC on their balance sheets will decrease, and the sensitivity of miner cash flow to short-term profitability will increase.

What to watch next

First, the sustainability of policies. A week of clearing might be a timing choice, while several months of sustained patterns would indicate new treasury dogma. The most useful signal will be updates in the coming weeks—showing the same line "BTC holdings," also separating corporate holdings from customer deposits.

Second, the cost of capital. The terms of convertible notes and equity financing indicate that this company is building space for survival, and when hashprice tightens, this survival space becomes a competitive weapon. Under pressure, miners with lower financing costs are buying time, while miners with higher financing costs are selling coins, equity, or assets.

Third, the profit margin background. Luxor hashrate index places hashprice near the breakeven point for many miners; the dramatic fluctuations in difficulty show how quickly the denominator can swing while the network is still adjusting. Miners are building on these shifting foundations; their treasury acts as a stabilizer.

The cleanest interpretation of this week is procedural: miners follow incentives, and incentives flow through hashprice, difficulty, and financing terms.

Bitdeer turned reserves into cash, and the week it did so, it also adjusted its capital structure and clarified priorities for future expenditures—data centers, HPC, AI, and ASIC.

The entire industry can absorb one company emptying its treasury, but the entire industry must also confront this model: a mining ecosystem that views Bitcoin as throughput rather than a hoarded item, and which treats its balance sheet exposure as an adjustable knob based on maintaining operating costs, is gradually being shaped.