Bitdeer Technologies Group is making headlines once again, this time for its ambitious plan to raise $300 million through a private placement of convertible senior notes due in 2032. The announcement comes as the Singapore-based Bitcoin mining and AI infrastructure company faces significant stock market reactions, with shares plummeting by 17.38% to close at $7.94 on Thursday.
The convertible notes offering includes an attractive option for initial purchasers to acquire an additional $45 million in notes, potentially boosting the total offering to $345 million if exercised. Despite this financial maneuver aimed at fueling future growth, the market’s immediate response was negative, with shares slipping further to $7.89 in after-hours trading.
Year-to-date, Bitdeer’s stock is down 29% and has seen a staggering decline of nearly 70% from its all-time high of around $26, which it reached in January 2025. This recent downturn is reminiscent of the company’s previous convertible note offering back in April 2024, where a $150 million attempt resulted in an 18% dip in stock price.
Convertible notes present a dual-edged sword for investors, allowing the potential conversion of debt into equity but also raising concerns about future stock dilution. To mitigate dilution effects, Bitdeer plans to implement capped call transactions, a strategy designed to shield existing shareholders as much as possible.
This funding is earmarked for several strategic initiatives: expanding data center facilities, enhancing its AI cloud services, and developing advanced crypto mining rigs. Bitdeer operates multiple data centers across the US, Norway, and Bhutan, positioning itself as a significant player in the blockchain infrastructure landscape.
In conjunction with the note offering, Bitdeer revealed plans for a registered direct share offering, which is linked to a strategy for repurchasing a segment of its existing convertible notes due in 2029. This transaction is contingent on the successful completion of the new offering, highlighting the intertwined nature of Bitdeer’s fundraising efforts.
Despite these challenges, the company reported impressive Q4 results, with revenues soaring to $224.8 million—a remarkable 226% increase compared to the same quarter last year, where revenues stood at $69 million. Bitdeer notably turned a profit of $70.5 million, reversing a significant loss of $531.9 million from the previous year. Additionally, its mining capabilities have increased, with 1,673 bitcoins mined in Q4 compared to just 469 a year earlier, pushing its total managed hashrate to 71 EH/s.
As of December 31, Bitdeer held approximately 2,000 BTC, although recent reports indicate a decline in this figure to around 943 BTC as the company sold some of its holdings earlier this year to finance expansion efforts.
The new convertible notes will carry semiannual interest payments and can be settled in cash, Class A ordinary shares, or a combination of both, representing a strategic move for Bitdeer as it navigates the complex crypto landscape.
