Shares of Bitdeer Technologies Group slid sharply on Thursday after the Bitcoin mining and AI infrastructure firm unveiled plans for a $300 million convertible senior notes offering.
Bitdeer said it plans to issue $300 million in principal amount of convertible senior notes in a private placement, with an option for initial purchasers to buy up to an additional $45 million.
This marks the company’s second such raise. In April 2024, Bitdeer launched a $150 million convertible note offering that also led to a double-digit drop in its share price.
Convertible senior notes are debt instruments that can later be converted into common stock. They rank above other unsecured debt in the event of bankruptcy and typically offer investors downside protection with potential upside through equity conversion.
The newly issued notes are set to mature in 2032 and will be senior unsecured obligations carrying semiannual interest payments. They may be settled in cash, shares, or a mix of both.
Bitdeer said it intends to use the proceeds to expand its data center footprint, scale its AI cloud services, develop crypto mining hardware, and fund general corporate operations. The company is headquartered in Singapore and operates data centers in the United States, Norway and Bhutan.
Stock drops 17%
Bitdeer (BTDR) shares closed Thursday down 17.38% at $7.94 and edged slightly lower in after-hours trading to $7.89.
The stock is now down roughly 29% year-to-date and nearly 70% below its January 2025 all-time high of about $26.
Convertible debt can weigh on a company’s share price, as investors factor in the possibility of future dilution. If the stock appreciates, noteholders may choose to convert their debt into equity, increasing the total number of shares outstanding.
Alongside the new issuance, Bitdeer Technologies Group is conducting a concurrent registered direct share offering as part of a plan to repurchase a portion of its existing convertible notes due in 2029.
The company also intends to enter into “capped call transactions” — derivatives commonly used in conjunction with convertible offerings to limit potential dilution. However, the move did little to stem the stock’s decline.
