Bitdeer Announces $150 Million Convertible Notes Offering

Bitdeer Technologies Group, a Singapore-based cryptocurrency mining company, has proposed a $150 million public offering of convertible notes set to mature in 2029.

The company aims to use the funds to expand its data centers and develop new ASIC mining rigs.

The notes, which are senior and unsecured, will mature on August 15, 2029, unless they are converted, redeemed, or repurchased earlier. These convertible notes can be transformed into equity and will offer holders an 8.5% annual interest rate.

Upon conversion, Bitdeer will provide holders with Class A ordinary shares or a mix of cash and Class A shares. The funds from this offering will be allocated towards expanding data centers, advancing ASIC-based mining technology, and covering other corporate needs.

Bitdeer, ranked as the 11th largest crypto mining firm globally with a market cap of around $870 million, saw its stock drop by over 18% following the announcement.

The decline was more pronounced over five days, with a 23% drop from $8.26 on August 9 to $6.33. This trend mirrors a similar impact on Core Scientific, which experienced a 10% stock decline after a $400 million convertible notes offering announcement on August 14.