Bitdeer Technology Group shares have taken another sharp downturn, exacerbated by a significant sell-off from one of its most prominent backers. The digital asset mining firm’s stock tumbled after Tether, a key institutional investor, significantly reduced its holdings just as Bitdeer reported a staggering $266 million net loss for the third quarter.
In a recent disclosure, it was revealed that Tether had sold approximately 7.7 million Bitdeer shares since September, generating around $166 million in proceeds. This move slashed Tether’s ownership from roughly 23% to 18%, a decision that has intensified market anxiety around Bitdeer’s financial stability and future prospects.
The share disposals were not haphazard but conducted through a series of deliberate open-market transactions. The timing of these sales appears closely linked to Bitdeer’s disappointing quarterly earnings, which had already triggered a loss of investor confidence. The combination of heavy insider selling and underwhelming financial results created a perfect storm that sent shares spiraling.
Tether began its phased exit in mid-September, starting with the sale of 351,061 shares on September 12 at an average price of $16.07. Subsequent sales followed on September 22 and 23, at $17.26 and $18.28 per share, respectively. But the most dramatic shift occurred on October 15, when Tether offloaded more than 3.2 million shares in one day, capitalizing on a temporary price surge that saw shares trading as high as $27.16.
This aggressive divestment marks a stark contrast to Tether’s earlier strategy. Between February and April, the issuer of the USDT stablecoin had been rapidly accumulating Bitdeer stock, purchasing around 8 million shares at prices between $7.61 and $10. That period of heavy buying positioned Tether as a cornerstone investor, holding up to 38.07 million Class A shares at its peak.
As of November 10, Tether’s remaining stake in Bitdeer stands at 30.36 million shares, equivalent to an 18% ownership position. While still a substantial holding, it reflects a clear retreat from the company’s previous bullish stance.
What prompted Tether’s strategic pivot remains uncertain, but the move coincided suspiciously with the release of Bitdeer’s third-quarter financials. The firm’s $266.7 million loss represents a year-over-year decline of over 422%, raising concerns about its operational efficiency and long-term viability in a challenging crypto mining landscape.
Bitdeer’s stock closed on Tuesday at $15.02, marking a 14.9% drop for the day. The sell-off underscores the fragility of investor sentiment, especially when a high-profile backer begins to withdraw support.
This episode highlights the volatility and uncertainty that still define the crypto mining sector. As regulatory pressures, energy costs, and market competition mount, even well-capitalized firms like Bitdeer are struggling to maintain profitability.
Further complicating matters is the broader macroeconomic environment. Rising interest rates, tightening liquidity, and growing skepticism toward crypto-related equities have contributed to the sector’s instability. For Bitdeer, this means that regaining investor trust will likely require more than just operational improvements — it may necessitate a complete strategic overhaul.
Additionally, the market is closely watching how Tether’s exit might influence other institutional investors. Tether had been seen as a vote of confidence in Bitdeer’s long-term growth narrative. Its decision to start cashing out could signal deeper concerns about the firm’s outlook or a shift in Tether’s broader investment priorities.
For Bitdeer, the challenge now is twofold: stabilizing its financials and reassuring shareholders. The company will need to address both the causes of its mounting losses and the strategic missteps that may have undermined investor confidence.
Some analysts speculate that Bitdeer may need to explore partnerships, asset sales, or even a restructuring of its mining operations to reduce overhead. Others suggest diversifying its revenue sources beyond Bitcoin mining, especially as the industry faces increasing difficulty and diminishing block rewards.
Looking ahead, the upcoming halving event in the Bitcoin network, expected in 2024, could further strain miners like Bitdeer. While historically such events have preceded price rallies, they also reduce miner rewards, putting additional pressure on firms already operating at thin margins.
Meanwhile, Tether’s move may also reflect a broader strategic reallocation. As one of the most influential players in the crypto ecosystem, Tether might be shifting capital toward more liquid or lower-risk assets amid growing market uncertainty.
In short, the recent developments around Bitdeer and Tether underscore the high stakes and rapid shifts that define the digital asset industry. For investors, the message is clear: even cornerstone support can falter when financial fundamentals begin to crack.