The cryptocurrency mining company Bitdeer has recently secured a remarkable funding amounting to 60 million dollars. This infusion is aimed primarily at expanding its production of ASIC miners for Bitcoin mining and bolstering its self-mining operations in an increasingly competitive landscape.
The timing of this investment is critical. The hashrate of the Bitcoin network has soared to unprecedented heights, creating intense competition and squeezing the profit margins of miners. In essence, more miners are chasing the same rewards, making it crucial for companies like Bitdeer to innovate and improve their efficiency.
This substantial financing comes through a loan agreement with Matrixport, an affiliated company founded by Jihan Wu, who is also the current chairman of Bitdeer. The terms of this line of credit are equally impressive, allowing for a potential total of 200 million dollars. The financing is backed by Bitdeer’s proprietary hardware, Sealminer, and carries a variable interest rate of 9%, linked with current market benchmarks. As of April 21, Bitdeer had already withdrawn 43 million dollars from this line of credit, showcasing immediate confidence in its growth potential.
Bitdeer: a capital injection to strengthen ASIC production for Bitcoin mining
This current financing marks just one phase in a series of financial maneuvers Bitdeer has engaged in throughout 2024. Earlier in the year, the company managed to secure an unsecured loan of 17 million dollars. It also raised a significant amount of 572.5 million dollars through convertible bonds, while issuing over six million shares which generated nearly 119 million dollars. These actions signal a strong intent to solidify Bitdeer’s footprint in the mining sector, even amidst challenges posed by an escalating hashrate and decreasing transaction fees.
<pCompounding this, in February 2025, Bitdeer made strides in energy management by acquiring an energy project in Fox Creek, Alberta. This project has a capacity of 101 megawatts (MW) and came with a price tag of 21.7 million dollars. Equipped with necessary construction permits and a 99 MW grid connection, the site is poised for expansion, potentially reaching up to 1 gigawatt. The energy facility is expected to be operational by the fourth quarter of 2026, which will augment Bitdeer’s capabilities significantly.
Additionally, Bitdeer has made tactical acquisitions, such as purchasing 40 MW of liquid-cooled mining containers from Saiheat in March 2025. This move reinforces its underlying infrastructure amid a declining demand for hardware from broader industry players. Adopting a focused strategy on self-mining and internal production within the United States, Bitdeer aims to elevate its autonomy and control over Bitcoin production, mitigating reliance on hardware sales during a time of market fluctuations.
As articulated by Jeff LaBerge, Bitdeer’s head of capital markets and strategic initiatives, the company intends to prioritize the expansion of their mining operations that are directly managed. This strategic pivot arises from the imperative to adapt to the competitive landscape where agility and self-sufficiency are crucial.
Share Repurchase Program
In a further illustration of its financial confidence and commitment to shareholder value, Bitdeer has initiated a stock buyback program valued at 20 million dollars. Launched on February 28, 2025, this program allows for the repurchase of shares until February 2026. As of now, Bitdeer has already repurchased 1,056,500 Class A shares, totaling around 12 million dollars. This not only reflects a strong belief in its future potential but also serves as a strategic tool for managing capital efficiently.
The expansion of Bitdeer coincides with notable growth in the Bitcoin network’s hashrate, which has recently peaked at an astonishing 1 sextillion hashes per second, as indicated by data from BitInfoCharts. The surge in hashrate reflects the influx of new miners entering the competition or the adoption of more advanced mining rigs. However, this boost in overall computing power translates to greater competition for solving blocks, diluting the probability of success for individual miners and, in turn, impacting their overall profitability.
Moreover, Bitcoin miners currently face the dual challenge of not only increasing competition but also drastically low transaction fees. Presently, the average fee for Bitcoin transactions hovers around 1 dollar, markedly lower than the 16 dollars seen in the same month the previous year, based on data from YCharts. This scenario has compelled many public miners to offload over 40% of their BTC production as of March— a worrying trend indicating the economic pressures gripping the industry. Some companies, including Hive, Bitfarms, and Ionic Digital, have reported selling more than 100% of their monthly production, revealing not only survival instincts but also the formidable challenges they face.
Bitdeer prepares for the future of mining
Despite these hurdles, Bitdeer is not just standing firm; it is actively positioning itself for a forward-thinking approach to Bitcoin mining. Armed with a robust financial foundation, strategic investments in energy infrastructure, and heightened focus on self-mining operations, Bitdeer looks to consolidate its leadership role in the sector.
In an environment characterized by rapid evolution, where operational efficiency and access to low-cost energy become not just priorities but necessities, Bitdeer aspires to turn market challenges into growth opportunities. The firm’s adaptive strategy reflects both a readiness to face competition and a commitment to seizing the potential that lies ahead.