Jihan Wu's Matrix Finance offers $200 million credit facility to Jihan Wu's Bitdeer Bitcoin mining operation

Bitdeer Technologies Group (NASDAQ: BTDR), backed by stablecoin issuer Tether, opened a credit facility earlier this month with Matrix Finance that provides up to $200 million in financing to support the expansion of its global Bitcoin mining operations, the company announced Monday.

The move comes three months after Bitdeer acquired a 101-megawatt data center site near Fox Creek, Alberta, in a $21.7 million cash deal.

As of April 21, the company had drawn down $43 million from the facility, according to the release. The loans carry a variable interest rate of 9% plus a market-based reference rate and are repayable in fixed monthly installments over 24 months. They are secured by Bitdeer’s Sealminer mining hardware.

Matrix Finance is a crypto financial services firm founded by Bitdeer Chairman Jihan Wu, the former CEO of ASIC manufacturer Bitmain. Wu launched Bitdeer in 2020, about a year after founding Matrixport. The Sealminer product line debuted in 2023 as part of Bitdeer’s strategy to move deeper into the ASIC supply chain.

Shares of Bitdeer, which trade on the Nasdaq under the ticker BTDR, rose 22.88% on Tuesday.

The financing comes at a complex time for Bitcoin miners, who face rising competition amid a growing network hashrate, while many are still adjusting to reduced revenues following the most recent Bitcoin halving and lower transaction fees. Despite a boost in sentiment after former President Donald Trump pledged support for the domestic mining sector, many firms are feeling the crunch.

In February, Bitdeer reported full-year revenue of $69 million, a 40% year-over-year decline, and a substantial drop in gross profit to $5.1 million from $27 million. On Monday, Needham analyst John Todaro lowered his price target on the stock from $15 to $13 but maintained a “buy” rating.

Bitdeer reduced its adjusted EBITDA estimates due to forecasted lower ASIC chip deliveries in the coming months and potentially increased power costs. Like many other mining firms, Bitdeer has turned to both equity and debt markets to fund growth. In November 2024, it issued $400 million in convertible senior notes due in 2029 at a 5.25% interest rate — just months after raising $172.5 million through a similar offering.

Tether is among Bitdeer’s major financial backers . The stablecoin company acquired a $100 million equity stake in the miner through a private placement, with an option to purchase an additional $50 million in shares within a year. Bitdeer, like Tether, has also signaled plans to expand into the artificial intelligence sector.