Shares of Bitdeer Technologies (NASDAQ:BTDR) dropped 4% following the publication of a critical analysis by Callisto Research, which has taken a bearish position on the bitcoin mining enterprise. The research organization issued an extensive examination challenging the company’s operational transparency, corporate oversight, and market pricing, resulting in downward pressure on the stock.
The cryptocurrency mining operation, established by Jihan Wu and separated from Bitmain during 2021, has faced increased examination after Callisto Research’s publication. The analysis claims multiple concerns including unclear digital asset revenue management, non-disclosed ownership interests in mainland Chinese entities, and business dealings that may suggest deceptive practices. The assessment additionally emphasizes the firm’s financial losses throughout 2023 and 2024, along with unfavorable operational cash generation since completing its SPAC transaction.
Callisto Research’s evaluation identifies what it describes as “severe transparency issues, financial irregularities, and governance failures” at Bitdeer, raising questions about the dependability of the corporation’s public financial statements. The highlighted concerns encompass connections with affiliated entities in international tax havens, possible violations of Chinese regulatory reporting requirements, and corporate purchases that might be excessive in price.
The research publication additionally challenges the credibility of Bitdeer’s executive team, referencing Jihan Wu’s disputed tenure at Bitmain and the appointment of Jeff Laberge as Head of Capital Markets, who was previously sanctioned by securities regulators. Callisto Research determines that Bitdeer’s equity remains “uninvestable” absent substantial improvements in corporate disclosure practices.
The mining company has not yet issued a public statement addressing the claims presented in the research analysis.