The notes are due to settle in 2032, carry semiannual interest payments, and can be converted into cash, shares, or a combination of both.
Crypto News
Shares in Bitdeer Technologies Group fell 17.38% on Thursday after the Singapore-headquartered Bitcoin mining and AI infrastructure firm announced a $300 million convertible senior note offering in a private placement.
The offering includes an option for purchasers to acquire an additional $45 million in notes. The notes are due to settle in 2032, carry semiannual interest payments, and can be converted into cash, shares, or a combination of both. As senior unsecured obligations, holders have priority over other creditors in the event of bankruptcy.
Bitdeer intends to use the proceeds to fund data center expansion, AI cloud growth, development of crypto mining hardware, and general corporate purposes. The company operates data centers in the United States, Norway, and Bhutan.
This is Bitdeer's second convertible note offering. A prior $150 million offering in April 2024 triggered an 18% stock decline at the time, a pattern that has repeated with the latest raise. Convertible notes function as loans that investors can convert into equity, and the prospect of future share dilution typically weighs on stock prices when such instruments are announced.
To manage dilution risk, Bitdeer is running concurrent capped call transactions alongside the offering, a structure commonly used to limit the dilutive impact of note conversions. The company is also conducting a registered direct share offering tied to a plan to repurchase a portion of its existing convertible notes due in 2029.
BTDR shares closed Thursday at $7.94 and slipped further in after-hours trading to $7.89. The stock is down 29% since the start of the year and approximately 70% from its January 2025 all-time high near $26.
The broader pressure on BitcoinMining company valuations reflects a combination of post-halving margin compression and investor sensitivity to capital structure decisions that increase share count risk. Bitdeer's case illustrates how even miners with AI and HPC diversification strategies face market skepticism when raising debt at scale.
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