Bitdeer Raises $330M Convertible Note Offering Amid Stock Decline
Singapore-based miner plans to deploy funds for options, expansion, and operations, not major Bitcoin accumulation.
Singapore-based Bitcoin mining company Bitdeer Technologies International Ltd. (BTDR) announced a significant upsized convertible notes offering of $330 million on Wednesday, aiming to raise capital amidst ongoing stock price declines.
The offering, increased from the initially planned $300 million, targets investors via convertible notes due in 2031 at a 4.875% interest rate, expected to close by June 23. Bitdeer further offered an option to initial purchasers for an additional $45 million in principal notes.
Unlike many crypto-related firms that utilize such funding to purchase substantial amounts of Bitcoin, Bitdeer stated its primary intention is to deploy the proceeds differently. Approximately $129.6 million is earmarked for acquiring zero-strike call options. An additional $36.1 million is designated for cash payments related to potential share issuance upon conversion.
The remaining funds, according to Bitdeer’s filing with the SEC, will be allocated towards “data center expansion, ASIC-based mining rig development and manufacture, as well as working capital and other general corporate purposes.” When asked by Decrypt if general corporate purposes included potential Bitcoin purchases, Bitdeer representatives declined comment.
The news release follows a period of significant stock volatility. Bitdeer shares experienced a further drop on Wednesday, contributing to a monthly decline nearing 23% and adding to a weekly drop of over 7%. Year-to-date, BTDR shares are down approximately 12%, while month-to-date they are off over 23%.
This performance reflects a challenging period for publicly traded Bitcoin miners, particularly in March, which JP Morgan previously identified as the worst year-to-date performance for the sector. Bitdeer’s stock has seen substantial declines over the past month and year, contrasting sharply with its Bitcoin mining operations.
Despite not being as prominent for aggressive Bitcoin accumulation as rivals like Marathon Digital (MARA) or Riot Platforms in recent funding rounds, Bitdeer holds a significant Bitcoin reserve. According to its last investor report from May, the company held 1,351 BTC, valued at roughly $140 million based on recent Bitcoin prices – a more than 100% increase from its December holdings reported in the preceding November report.
