Singapore-based Bitdeer Technologies, active in Bitcoin mining and AI data centers, announced a $300 million private convertible senior note issuance, triggering significant concerns among investors about potential share dilution. The offering targets institutional buyers and includes an option for initial investors to purchase an additional $45 million in notes, raising the total to $345 million. These notes can be converted into cash, Class A common shares, or a combination thereof at Bitdeer’s discretion. Following the announcement, Bitdeer’s shares fell over 18% in pre-market trading, dropping below $8 for the first time since April, and closed the day down approximately 15%, reflecting investor caution toward the company’s financial strategy.
Convertible debt typically pressures share prices as conversion increases the total number of shares, diluting existing shareholders’ ownership. To mitigate this risk, Bitdeer plans to execute capped call transactions with financial institutions, although such hedging can introduce additional price volatility. Concurrently, the company has offered some holders of its 5.25% convertible notes maturing in 2029 a registered direct offering of Class A common shares, with share quantity and pricing determined at pricing. Proceeds will primarily finance the capped call transactions and private contractual repurchases of some 2029 notes, with remaining funds allocated to expanding data centers and advancing high-performance computing and AI cloud businesses. Bitdeer also intends to develop ASIC-based mining rigs as part of its long-term plans.
These financial moves coincide with Bitdeer’s strategic shift from pure Bitcoin mining to broader infrastructure services. The company reported Q4 revenue of $224.8 million, a 226% increase year-over-year, and net income of $70.5 million compared to losses in the same period last year. It mined 1,673 Bitcoin in the quarter and held nearly 2,000 Bitcoin on its balance sheet, though recent financial decisions have reduced this holding. These developments may significantly impact Bitdeer’s financial health and future strategy, particularly regarding investor confidence and share valuation.
Source: bitcoinmagazine
