TLDR
- Bitdeer (BTDR) stock fell 17.38% to $7.94 Thursday after announcing a $300 million convertible senior note offering
- The offering includes an option for purchasers to buy an additional $45 million, bringing the potential total to $345 million
- Notes are due 2032 and proceeds will fund data center expansion, AI infrastructure, and crypto mining rig development
- This is Bitdeer’s second convertible note offering; its April 2024 $150 million offering also triggered an 18% stock drop
- BTDR is now down 29% year-to-date and nearly 70% from its January 2025 all-time high of around $26
Bitdeer Technologies Group dropped sharply on Thursday after announcing plans to raise $300 million through a private placement of convertible senior notes due 2032.
Bitdeer Technologies Group, BTDR
The Singapore-based Bitcoin miner and AI infrastructure company said initial purchasers will also have the option to buy an additional $45 million in notes. If exercised, the total offering reaches $345 million.
BTDR shares closed down 17.38% at $7.94 and slipped further in after-hours trading to $7.89. At its pre-market low, the stock touched $7.88, down from the prior day’s close of $9.61.
The stock is now down 29% since January 1 and nearly 70% from its all-time high of around $26 set in January 2025.
This is not the first time a debt offering has hit Bitdeer’s stock. In April 2024, a $150 million convertible note offering triggered an 18% slump — nearly identical to Thursday’s reaction.
Convertible notes allow investors to convert debt into company shares. That prospect of future dilution tends to put pressure on the stock price, as investors account for a potentially larger share count down the road.
To counter that, Bitdeer said it plans to use capped call transactions — derivatives designed to limit dilution from conversions. That did not stop the selloff Thursday.
What the Money Is For
Bitdeer plans to use the proceeds to expand data centers, grow its AI cloud business, develop new crypto mining rigs, and cover general corporate expenses.
The company operates data centers in the US, Norway, and Bhutan.
Separately, Bitdeer also disclosed a registered direct share offering tied to a plan to repurchase a portion of its existing 5.25% convertible notes due 2029. That transaction is contingent on the new note offering closing.
Strong Q4, But Shares Still Under Pressure
Bitdeer posted $224.8 million in Q4 revenue, up 226% from $69 million in the same quarter a year earlier. It also swung to a net profit of $70.5 million from a $531.9 million loss the prior year.
The company mined 1,673 bitcoins in Q4, up from 469 a year earlier, and grew its total managed hashrate to 71 EH/s, including 55.2 EH/s of self-mining — surpassing rival MARA Holdings.
As of December 31, Bitdeer held around 2,000 BTC on its balance sheet. More recent data from BitcoinTreasuries suggests that figure has since dropped to roughly 943 BTC, as the company sold holdings earlier this year to fund expansion.
The notes will be settled in 2032 as senior unsecured obligations, with semiannual interest payments. Conversions can be settled in cash, Class A ordinary shares, or a mix of both.
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