Investing.com -- Bitdeer Technologies (NASDAQ: BTDR ) shares tumbled 4% after the company was targeted as a short by Callisto Research. The research firm released a detailed report questioning the bitcoin mining company’s financial transparency, governance, and valuation, leading to a negative market response.
Bitdeer, which was founded by Jihan Wu and spun off from Bitmain in 2021, has been under scrutiny following the Callisto Research report. The report alleges a series of issues including opaque cryptocurrency revenue handling, undisclosed stakes in Chinese companies, and transactions that could indicate fraudulent activity. The report also highlights the company’s net losses for the years 2023 and 2024, as well as negative operating cash flow since its SPAC listing.
The short-seller’s analysis points to what it considers "severe transparency issues, financial irregularities, and governance failures" within Bitdeer, casting doubt on the reliability of the company’s public disclosures. Among the concerns raised are the relationships with related parties in offshore jurisdictions, potential non-compliance with Chinese business disclosures, and acquisitions that may be overvalued.
The report also questions the integrity of Bitdeer’s management, citing Jihan Wu’s controversial history at Bitmain and the hiring of Jeff Laberge, a Head of Capital Markets previously barred by the SEC. Callisto Research concludes that Bitdeer’s shares are "uninvestable" without significant changes in transparency.
Bitdeer has yet to publicly respond to the allegations made in the report.
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