Bitdeer Secures $60 Million Loan to Boost ASIC Production Amid Intensifying Mining Competition

Bitdeer, a leading Bitcoin mining firm, has secured $60 million in loans to enhance its Bitcoin ASIC (Application-Specific Integrated Circuit) production capabilities. This move is strategic as the global mining competition intensifies, driven by record-breaking network hashrates. The hashrate, a measure of the computational power used to mine Bitcoin, reached an unprecedented 1 sextillion hashes per second in early April, indicating a surge in the number of miners or the power of their machines.
The funding was secured through a loan agreement with Matrixport, a crypto financial services company founded by Bitdeer’s chairman, Jihan Wu. The facility offers up to $200 million, backed by Bitdeer’s Sealminer hardware, with a floating interest rate of 9% plus market benchmarks. As of April 21,
had already drawn $43 million from this credit line. This latest funding adds to a $17 million unsecured loan obtained in January and previous capital raises totaling $572.5 million via convertible notes in 2024. Additionally, Bitdeer issued over six million shares, raising nearly $119 million in equity markets this year.Bitdeer’s expansion efforts extend beyond ASIC production. In February 2025, the company acquired a fully licensed 101 megawatt (MW) gas-fired power project near Fox Creek, Alberta, for $21.7 million in cash. This power project, with the potential to scale up to 1 gigawatt, includes all necessary permits for construction and a 99 MW grid connection. The power plant is set to be developed with an EPC partner and is expected to be operational by the fourth quarter of 2026. In March, Bitdeer also purchased 40 MW worth of liquid-cooled mining containers from Saiheat.
The company’s strategic shift towards self-mining operations and investing in United States-based production is a response to the cooling demand for its mining hardware from other miners. Jeff LaBerge, Bitdeer’s head of capital markets and strategic initiatives, emphasized the company’s plan to prioritize its own self-mining efforts. This shift is aimed at mitigating the declining profitability faced by miners due to the increasing hashrate and low transaction fees.
Bitdeer’s expansion comes at a challenging time for Bitcoin miners. The rising hashrate implies that more miners are competing for block rewards, reducing the chances of individual miners earning these rewards. Additionally, low transaction fees, which currently hover around $1, further strain miner revenues. As a result, public miners have been forced to sell a significant portion of their BTC production to maintain liquidity. This trend highlights the financial pressures faced by miners in the current market environment.
In response to these challenges, Bitdeer has also launched a $20 million share repurchase program, effective through February 2026. To date, it has repurchased 1,056,500 Class A shares valued at about $12 million under this program. This move is aimed at enhancing shareholder value and demonstrating the company’s confidence in its future prospects.
Overall, Bitdeer’s strategic investments and funding initiatives reflect its commitment to maintaining a competitive edge in the Bitcoin mining industry. By expanding its ASIC production, acquiring power projects, and prioritizing self-mining, the company is positioning itself to navigate the challenges posed by the intensifying mining competition and declining profitability.

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