Shares in Bitdeer Technologies Group fell sharply after the Bitcoin mining and AI infrastructure firm announced a new $300 million convertible senior note offering. The stock dropped over 17% to $7.94, mirroring a similar decline following a $150 million note offering in April 2024. The company plans to use the proceeds for data center expansion, AI cloud growth, and general corporate purposes.
Bitdeer Technologies Group announced a proposed private placement of $300 million in convertible senior notes. The firm said purchasers would have an option to buy an additional $45 million.
This marks the company’s second such offering, following a $150 million offering in April 2024. Convertible senior notes are loans that investors can later convert into shares of the issuing company’s common stock.
The new notes are due in 2032 and are senior unsecured obligations with semiannual interest payments. They can be converted into cash, shares, or a combination of both.
Bitdeer intends to use the proceeds for data center expansion, AI cloud growth, development of crypto mining rigs, and general corporate purposes. The company is headquartered in Singapore with data centers in the US, Norway and Bhutan.
Shares in Bitdeer ended trading on Thursday down 17.38% to $7.94. The stock fell slightly further in after-hours trading to $7.89.
Company stock is currently down 29% since the beginning of the year. It has also fallen almost 70% since its January 2025 all-time high of around $26.
Convertible debt often puts pressure on shares as investors factor in the risk of future dilution. If the stock rises, noteholders may convert their debt into equity, increasing the share count.
Bitdeer is also running a concurrent registered direct share offering tied to a plan to repurchase a portion of its existing convertible notes due in 2029. The company plans to use capped call transactions to offset potential dilution from the new notes.
