Lucía Peña
Bitdeer Technologies Group (NASDAQ: BTDR), a Bitcoin mining firm backed by stablecoin issuer Tether, has secured up to $200 million in financing through a credit facility arranged with Matrix Finance, a digital asset financial services firm founded by Bitdeer Chairman Jihan Wu. The funding, disclosed on Monday, will be used to accelerate Bitdeer’s global expansion plans in the Bitcoin mining sector.
The credit line was made available earlier this month and follows Bitdeer’s recent acquisition of a 101-megawatt data center located near Fox Creek, Alberta, which was purchased for $21.7 million in cash.
$43 Million Already Accessed From Credit Facility
As of April 21, Bitdeer has already drawn $43 million from the credit line. The terms include a variable interest rate of 9% above a market-based benchmark, with 24-month repayment terms structured in fixed monthly installments. The loans are collateralized by Bitdeer’s Sealminer hardware units, a proprietary ASIC mining product line launched in 2023 to deepen the firm’s involvement in the mining equipment supply chain.
The relationship between Bitdeer and Matrix Finance is no coincidence—both companies were founded by Jihan Wu, the former CEO of mining hardware giant Bitmain. Wu’s crypto empire has expanded from manufacturing to financing and now directly supporting large-scale mining infrastructure.
Bitdeer Stock Jumps as Market Reacts to Expansion Efforts
Following the announcement, Bitdeer shares surged by 22.88%, signaling investor optimism despite industry headwinds. The Bitcoin mining landscape is currently facing multiple challenges, including increased hashrate competition, reduced block rewards post-halving, and lower transaction fees that are squeezing profit margins across the board.
Even as political support emerges—such as Donald Trump’s pledge to promote domestic mining—many operations are still grappling with significant financial pressure.
Revenue Declines and Strategy Shifts Amid Tough Market Conditions
Bitdeer reported $69 million in revenue for 2023, a 40% drop compared to the previous year. Gross profits also fell dramatically, from $27 million to $5.1 million, reflecting the impact of market volatility and cost pressures. As a result, Needham analyst John Todaro revised his price target for Bitdeer stock from $15 to $13, though he maintained a “buy” rating.
Due to projected delays in ASIC chip deliveries and potential increases in energy costs, Bitdeer also reduced its adjusted EBITDA outlook for the upcoming quarters. To fund its strategic initiatives, the company has pursued both equity and debt financing. In late 2024, Bitdeer raised $400 million through convertible senior notes maturing in 2029 with a 5.25% coupon rate, following an earlier $172.5 million private placement.
Tether’s Strategic Involvement Signals Long-Term Vision
Tether remains a key investor in Bitdeer, having acquired $100 million worth of equity with an option to increase its stake by another $50 million within the year. The partnership underscores Bitdeer’s growing influence and long-term ambitions—not just in mining, but also in emerging technologies. Both Tether and Bitdeer have hinted at upcoming ventures in the artificial intelligence sector, adding a new layer to their digital infrastructure focus.
