Crypto miner Bitdeer is in discussions with private credit firms to secure $100m in financing to expand its Bitcoin mining capacity.
Bloomberg reported Wednesday that talks are still ongoing, with details yet to be finalized.
Bitdeer is among the largest bitcoin miners globally. It went public on Nasdaq in April last year through a special purpose acquisition company merger. Headquartered in Singapore, it is recognized for its cloud services expediting GPU instance deployment.
The firm manages mining farms globally, with a total electricity capacity of 895MW. Jihan Wu, a prominent figure in the crypto space, serves as founder and CEO of Bitdeer. Wu is notable for being the first to translate Satoshi Nakamoto’s Bitcoin whitepaper into Mandarin.
Bloomberg reported that should Bitdeer soon secure financing, it would follow in the footsteps of cannabis producer Ascend Wellness and wheel supplier Superior Industries in the direct-lender route.
Bitdeer didn’t return Cryptonews’ request for comment by press time.
Crypto Companies Seek Expansion Funds Amid Bitcoin Surge
With Bitcoin reaching record highs exceeding $72,000, crypto companies are seeking funds for expansion to capitalize on the surge. For instance, MicroStrategy and Coinbase opted for convertible note issuance. Meanwhile, Marathon Digital pursued acquisitions as part of its growth strategy.
Marathon Digital Holdings CEO Fred Thiel recently cautioned about the financial challenges smaller miners may encounter post the Bitcoin halving event scheduled for April. Thiel highlighted the disparity in capital-raising opportunities between larger and smaller miners, attributing the latter’s struggles in scaling to limited access to financing options.
“Post halving I think you’ll see the smaller miners come under financial stress, which will enable the bigger miners to consolidate the industry,” he said.
Bitdeer in Funding Pursuit Amid Crypto Market’s Uptick
Bitdeer’s fundraising efforts coincide with a renewed enthusiasm in the crypto markets. Goldman Sachs highlighted increased client interest in cryptocurrencies following the approval of spot bitcoin ETFs in the US.
According to the bank, the majority of demand is currently coming from traditional hedge funds. However, Goldman aims to extend its services to a wider range of clients, including asset managers, banks, and specific cryptocurrency-focused companies.
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