Jihan Wu and Bitdeer Face Scrutiny Over Transparency and Governance Concerns in Research Report

Bitdeer Technologies Group, a Nasdaq-listed Bitcoin mining company, has come under intense scrutiny following a detailed report by "Callisto Research," an organization that has taken a short position on the company’s stock (BTDR). The report attempts to raise serious questions about Bitdeer’s financial transparency, corporate governance, and business practices, painting a troubling picture of a company with significant operational and ethical challenges.

Founded by Jihan Wu, a former co-founder of Bitmain, Bitdeer was spun off in 2021 and went public in 2023 through a SPAC merger. The company, which specializes in proprietary Bitcoin mining, crypto mining, cloud mining, equipment sales, and hosting services, has faced persistent financial challenges and operational hurdles, prompting Callisto to label its shares “uninvestable” without substantial improvements in disclosure.

In response, Jihan Wu has publicly dismissed the report, arguing it relies on “complex but unrelated facts” and “misleading logic” to manipulate market sentiment for the benefit of short-sellers. Wu emphasized Bitdeer’s focus on its business fundamentals and hinted at potential legal action to protect the company’s reputation and shareholder interests. Despite this rebuttal, the allegations outlined in the 63-page report have sparked concern among investors, particularly given Bitdeer’s reported net losses in 2023 and 2024, alongside negative operating cash flow since its public listing. Additionally, Wu also said that the "short report author registered their domain on 2025-04-03 and the domain will be expired on 2026-04-03" insinuating that this may be nothing more than a drive by hit job, which lacks substance.

Key Allegations and Financial Red Flags

The Callisto report identifies several areas of concern that undermine confidence in Bitdeer’s operations and financial reporting. One of the most significant issues is the company’s allegedly opaque relationship with Matrixport, a crypto platform co-founded by Wu.

Bitdeer channels most of its self-mining and crypto related revenue through Matrixport, which also serves as the sole custodian of its cryptocurrency holdings. The report highlights that Matrixport operates in low-disclosure jurisdictions like the Cayman Islands and Seychelles, making its financial health difficult to verify. Furthermore, Matrixport’s Hong Kong subsidiary is reportedly balance sheet insolvent and has been linked to money laundering and entities involved in fraud, raising questions about Bitdeer’s claim of “no significant credit risk” and the potential for revenue inflation through related-party transactions.

Another critical issue is Bitdeer’s undisclosed ties to China, despite its public stance of having divested all Chinese assets before its SPAC merger. The report alleges that Bitdeer indirectly holds a stake in a Chinese semiconductor company with connections to state-owned entities and maintains relationships with undisclosed related parties in China. These ties could pose risks to Bitdeer’s partnerships with major chipmakers like Nvidia and TSMC, especially given some entities’ inclusion on the U.S. Commerce Department’s Entity List. Additionally, potential U.S. tariffs on Chinese imports could further complicate Bitdeer’s operations, particularly its reliance on Chinese suppliers.

The report also questions the legitimacy of Bitdeer’s $140 million acquisition of ASIC miner producer Desiweminer in 2024, suggesting the deal was overvalued and based on dubious claims about the company’s capabilities. Transactions with Matrixport and Chinese suppliers lack sufficient expense disclosures, which could enable revenue or expense manipulation. Compounding these concerns, Bitdeer has engaged with counterparties whose management faced legal scrutiny, including 500.com (fined for bribery) and Mercurify (linked to detained executives), suggesting either inadequate due diligence or a troubling tolerance for unethical partners.

Bitdeer’s complex corporate structure adds another layer of opacity, with subsidiaries like Straitdeer Pte Ltd, its Singapore-based operating arm, reported as balance sheet insolvent. The company’s use of smaller audit firms, such as MaloneBailey (recently fined for audit deficiencies), contrasts with competitors like Riot Platforms, which employs Deloitte. The report also critiques Bitdeer’s leadership, particularly Wu’s controversial tenure at Bitmain, marked by failed IPOs and allegations of ties to a $700 million Ponzi scheme. The hiring of Jeff Laberge, previously disbarred by the SEC, as Head of Capital Markets further fuels concerns about governance standards.

The Callisto report underscores the need for investors to approach Bitdeer with caution, given its alleged financial struggles and governance challenges. While Wu’s response signals confidence in the company’s long-term value, the allegations of transparency issues and questionable business practices cannot be fully dismissed.