BitDeer Technologies Group has secured $179 million in new funding to support its expansion into Bitcoin ASIC mining hardware production, signaling a major strategic shift aimed at competing with industry heavyweights such as Bitmain and MicroBT.
The capital raise, detailed in the company’s latest annual report, combines $60 million in loans with $118.8 million generated through the issuance of over six million Class A shares.
The infusion of funding will be channeled into scaling manufacturing capabilities, internal chip development, and infrastructure investments necessary to establish BitDeer as a formidable player in the hardware segment of the crypto mining industry.
The move highlights the company’s ambition to move beyond hosting and proprietary mining to hardware production, an area currently dominated by a small group of suppliers.
Matrixport Loan Deal Strengthens BitDeer’s Hardware Funding Framework
A pivotal element of this funding strategy is BitDeer’s new loan agreement with Matrixport, a financial services firm founded by Jihan Wu, BitDeer’s own chairman.
The agreement grants BitDeer access to up to $200 million, secured against its SEALMINER hardware assets. As of April 21, $43 million of this credit line had already been drawn.
With a floating interest rate set at 9% above a market benchmark and a two-year amortization plan, the loan is structured to provide rapid liquidity while minimizing immediate financial pressure.
The move illustrates BitDeer’s agility in leveraging internal relationships to source capital efficiently, and it underscores the company’s prioritization of hardware development as a critical growth vertical.
Also Read: Canaan Raises $200 Million to Accelerate Bitcoin Mining Expansion Across the United States
Aggressive Debt Strategy Reflects High-Stakes Growth Ambitions
BitDeer’s financing efforts extend beyond the Matrixport loan. In January, the company obtained a $17 million unsecured loan from a commercial bank.
With a steep 10.22% annual interest rate and a September maturity date, showing its readiness to assume higher-cost debt to achieve strategic goals.
Additionally, BitDeer raised $572.5 million through convertible senior notes in two separate offerings in 2024, with coupons of 8.5% and 5.25%.
These figures stand in stark contrast to competitors like Marathon Digital (MARA), Riot, and CleanSpark, which issued convertible notes at much lower or zero interest.
BitDeer’s approach signals a calculated, high-risk strategy designed to capture a significant share of the ASIC hardware market, despite the potential burden of high financing costs.
Also Read: Crusoe To Sell Bitcoin Mining Operation, Including 270MW Infrastructure & 425 Data Centers, To NYDIG
Equity Sales Bolster Capital-Intensive Production Strategy
In parallel with its debt strategy, BitDeer turned to public equity markets to strengthen its financial base.
From January through April 21, the company issued over six million Class A shares, raising nearly $119 million in net proceeds.
These funds are earmarked for the development of proprietary ASIC chips and broader manufacturing infrastructure.
BitDeer’s ability to generate approximately $147 million in gross margin from mining and hosting operations in 2024 (excluding depreciation) provides the company with operational stability, enabling it to commit resources to this capital-heavy expansion.
The combination of steady operational performance and aggressive capital investment positions BitDeer to disrupt the current ASIC hardware hierarchy by developing and deploying its own mining systems.
Broader Strategy and Market Challenges Amidst Industry Headwinds
BitDeer’s expansion into hardware comes at a turbulent time for crypto miners globally. Despite posting major losses, $531.9 million in Q4 2024 compared to just $5 million in the same period the year prior, the company continues to make bold strategic plays.
These include the $21.7 million acquisition of 19 acres of land in Alberta, Canada, where it plans to build a 101 MW data center for Bitcoin mining.
Additionally, Tether (USDT) has expanded its stake in BitDeer to 21%, highlighting growing investor confidence despite financial challenges.Â
BitDeer is targeting a hash rate of 40 EH/s, signaling strong growth intentions.
These developments underscore the company’s resolve to scale aggressively through vertical integration and infrastructure expansion, even as the broader mining sector faces tightening margins and regulatory scrutiny.
Also Read: Hut 8 Partners with Eric Trump to Launch American Bitcoin Mining Company