Bitdeer Secures Funding to Enhance Bitcoin ASIC Production Amid Mining Challenges

Bitdeer secured a $60 million loan to boost its Bitcoin ASIC production in response to rising global competition and record hashrates. It previously raised $572.5 million in 2024, acquired a 101 MW power project in Alberta, and is shifting focus towards self-mining operations. Despite a record hashrate, miner revenues are decreasing due to lower transaction fees.

Bitdeer has successfully secured $60 million in loans aimed at enhancing its Bitcoin Application-Specific Integrated Circuit (ASIC) manufacturing capabilities. This move is in response to the escalating competition in Bitcoin mining, as evidenced by record-setting network hashrates. The loan agreement, established with the affiliate firm Matrixport, was finalised in April and offers up to $200 million in financing, secured by Bitdeer’s Sealminer hardware, with a floating interest rate of 9%.

Since entering the agreement, Bitdeer has drawn $43 million as of April 21, adding to a previously acquired $17 million unsecured loan in January. The firm has also engaged in capital-raising activities, accumulating $572.5 million through convertible notes in 2024, and generating approximately $119 million from the issuance of over six million shares in equity markets this year.

In February 2025, Bitdeer expanded its operations by acquiring a licensed 101 megawatt (MW) gas-fired power project for $21.7 million, situated near Fox Creek, Alberta. This project is poised for future expansion up to 1 gigawatt and comes complete with essential construction permits and a grid connection of 99 MW, targeting operational readiness by late 2026.

Additionally, Bitdeer procured 40 MW of liquid-cooled mining containers in March to support its mining infrastructure. In alignment with shifting market demands, the company is now emphasizing its self-mining operations in the United States. Jeff LaBerge, Bitdeer’s head of capital markets, indicated a shift towards self-mining as a strategic focus.

The firm initiated a $20 million share repurchase programme on February 28, 2025, which is valid through February 2026. As of now, it has repurchased approximately 1,056,500 Class A shares, amounting to about $12 million.

Amid these expansions, Bitcoin’s network reach has surged, achieving unprecedented computing power of 1 sextillion hashes per second in early April. A higher hashrate signifies increased competition among miners, subsequently diminishing profitability as lower transaction fees also persist. Currently, the average Bitcoin transaction fee stands around $1, a stark contrast to $16 a year ago, prompting miners to sell over 40% of their BTC production – the largest sell-off since late 2024.