Bitdeer stock has taken another steep dive following a significant move by one of its largest investors. Tether, the company behind the USDT stablecoin, has cut its holdings in the Bitcoin mining firm, coinciding with Bitdeer’s announcement of a severe third-quarter loss totaling $266.7 million. The combination of disappointing financials and Tether’s strategic sell-off has intensified investor anxiety, triggering a sharp decline in Bitdeer’s share price.
Tether’s decision to reduce its position in Bitdeer has had a pronounced impact on the market. Regulatory filings reveal that between mid-September and November, Tether offloaded approximately 7.7 million shares, raising about $166 million in the process. This move reduced Tether’s ownership stake from around 23% to 18%, signaling a shift in its confidence in Bitdeer’s short-term performance.
The sales began quietly in September, with Tether selling 351,061 shares on September 12 at an average price of $16.07. This was followed by more disposals on September 22 and 23, selling shares at $17.26 and $18.28, respectively. Initially perceived as routine rebalancing, the trend escalated in October. On October 15 alone, Tether executed a massive sale of over 3.2 million shares, taking advantage of higher market prices that reached $25.49 and $27.16 per share.
This aggressive divestment contrasts sharply with Tether’s earlier buying strategy. Between February and April of the same year, Tether had been an enthusiastic buyer of Bitdeer shares, accumulating nearly 8 million shares at lower price points between $7.61 and $10. That accumulation helped cement Tether’s role as a cornerstone investor in Bitdeer.
As of November 10, Tether still holds 30.36 million Class A shares, equating to an 18% stake in the company. This is a marked decrease from its peak holding of 38.07 million shares in April, suggesting a strategic retreat rather than a full exit.
Bitdeer’s dismal Q3 performance likely accelerated Tether’s decision. The mining company’s reported net loss of $266.7 million marks a staggering 422% year-over-year decline, raising serious questions about its profitability and operational efficiency. This financial setback, when paired with Tether’s visible reduction in support, has sparked a wave of negative sentiment among investors, causing Bitdeer’s stock to close at $15.02 per share on Tuesday—a 14.9% drop in a single day.
The broader context also suggests that macroeconomic and sector-specific headwinds may have played a role in both Bitdeer’s dismal earnings and Tether’s exit. Rising energy costs, regulatory uncertainty, and Bitcoin price volatility have all placed mounting pressure on mining firms. Tether, as a major player in the digital asset ecosystem, may have opted to reallocate capital to more stable or promising ventures.
Tether’s gold-backed initiatives and expanding presence in traditional finance may also explain its portfolio shift. Reports suggest that the company is ramping up a $12 billion gold strategy, possibly reallocating resources from underperforming crypto holdings like Bitdeer into more tangible or inflation-resistant assets.
Meanwhile, Bitdeer faces increasing scrutiny over its business model and sustainability. The company, which went public via a SPAC deal, has faced criticism for its high-cost structure and dependence on Bitcoin market cycles. With mining profitability closely tied to Bitcoin’s price and network difficulty, Bitdeer’s future revenue streams remain uncertain unless it can improve operational efficiency or diversify its income sources.
Additionally, the upcoming Bitcoin halving—expected in 2024—could further squeeze miner margins unless offset by a significant price rally. Companies like Bitdeer must prepare for reduced block rewards, which will test their cost management and energy sourcing strategies.
Institutional investors may view Tether’s partial withdrawal as a red flag, prompting further sell-offs or hesitation to enter the stock. The perception of weakening support from a major backer can often have a cascading effect on investor confidence, especially in the volatile crypto sector.
Despite the negative outlook, some analysts argue that Bitdeer’s current valuation may present a buying opportunity for long-term investors, particularly if Bitcoin prices rebound or if the company successfully restructures its operations. However, this remains speculative, and the stock is likely to face continued volatility in the near term.
In summary, Tether’s decision to scale back its investment in Bitdeer has amplified concerns already stirred by the company’s poor quarterly results. The combination of financial underperformance, strategic investor retreat, and sectoral challenges paints a difficult road ahead for the mining firm. Investors will be watching closely to see whether Bitdeer can stabilize its operations and restore confidence in the months to come.