Shares of Bitdeer Technologies Group fell sharply on Thursday after the Bitcoin mining and AI infrastructure firm announced plans to raise $300 million through a convertible senior note offering.
The Singapore-headquartered company said it intends to issue $300 million in principal amount of convertible senior notes in a private placement, with an option for purchasers to buy an additional $45 million. The notes are expected to mature in 2032 and will pay semiannual interest.
The offering marks Bitdeer’s second such raise. In April 2024, the company launched a $150 million convertible note deal that similarly triggered a steep sell-off in its stock.
Convertible senior notes are a form of debt that can later be converted into common shares. In the event of bankruptcy, holders rank ahead of other unsecured creditors. Under the new terms, investors will have the option to convert the notes into cash, shares, or a combination of both.
Bitdeer said proceeds will be used to expand data centre capacity, grow its AI cloud business, develop crypto mining rigs and support general corporate operations.
Stock drops amid dilution concerns
Bitdeer (BTDR) closed Thursday’s session down 17.38% at $7.94 and slipped further 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 around $26.
Convertible offerings often weigh on share prices due to potential dilution. If the company’s stock rises, noteholders may convert their debt into equity, increasing the total number of shares outstanding and potentially pressuring existing shareholders.
Capped call strategy fails to reassure investors
Alongside the debt issuance, Bitdeer announced a concurrent registered direct share offering as part of a plan to repurchase a portion of its outstanding convertible notes due in 2029.
The company also said it intends to enter into “capped call” transactions, derivative arrangements commonly used to offset dilution risk associated with convertible notes. Notably, Bitdeer also announced the successful testing of its latest Bitcoin mining chip, SEAL03, following its tape-out.
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