Why Did Bitdeer Stock Tumble 14% Pre-Market Today?

• The notes will rank as senior unsecured obligations and accrue interest paid twice a year.
• Bitdeer said it will allocate part of the proceeds to repurchase a portion of its 5.25% convertible senior notes maturing in 2029.
• The remaining capital will support data center growth and the expansion of its high-performance computing and AI cloud operations.

Bitdeer Technologies Group (BTDR) announced on Thursday that it plans to raise $300 million through a private offering of convertible senior notes due 2032, as the Bitcoin mining and AI infrastructure company looks to fund expansion and refinance part of its existing debt.

The Singapore-based firm disclosed that the securities will be sold to qualified institutional buyers and may include an additional $45 million if initial purchasers exercise their option.

Terms Of The Notes

The notes will rank as senior unsecured obligations and accrue interest paid twice a year. Upon conversion, Bitdeer can settle in cash, its Class A ordinary shares, or a mix of both, depending on its preference. 

Following the announcement, Bitdeer’s stock traded over 14% lower in Thursday’s premarket. On Stocktwits, retail sentiment around the stock changed to ‘neutral’ from ‘bearish’ territory the previous day amid ‘high’ message volume levels. 

How Will Bitdeer Use The Proceeds?

Bitdeer said it will allocate part of the proceeds, along with funds from a planned registered direct share sale, toward capped call transactions designed to limit potential dilution from conversions. The company also intends to repurchase a portion of its 5.25% convertible senior notes maturing in 2029.

The remaining capital will support data center growth, expansion of its high-performance computing and AI cloud operations, development of ASIC-based mining equipment, and general corporate needs.

Bitdeer mined 668 Bitcoin during January, marking a more than fourfold increase from the same month last year. Its self-mining hashrate climbed to 63.2 exahashes per second, driven by the continued rollout of SEALMINER machines while phasing out older third-party equipment.

BTDR stock has declined by over 35% in the last 12 months. 

Also See: Why Did Etsy Stock Jump 20% Pre-Market Today?

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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