Shares in Bitdeer Technologies Group fell 17% on Thursday after the Bitcoin mining and artificial intelligence infrastructure firm unveiled a $300 million convertible senior note offering.
The Singapore-headquartered company said it intends to offer a principal amount of $300 million in convertible senior notes, with an option for initial purchasers to buy up to an additional $45 million in a private placement.
Bitdeer said it plans to use the proceeds for data centre expansion, AI cloud growth, development of crypto mining rigs and general corporate purposes, as investors reacted by sending the stock sharply lower.
The new notes, which are due to settle in 2032, are senior unsecured obligations carrying semiannual interest payments and may be converted into cash, shares, or a combination of both.
Convertible senior notes give holders priority over other debt in the event of bankruptcy and can later be exchanged for equity, raising the risk of dilution if the share price rises, and following the announcement the Bitdeer share price was down at $7.94.
The offering marks the firm’s second convertible note sale after a $150 million raise in April 2024 that also triggered an 18% stock slump, with shares now down 29% year to date and nearly 70% below their January 2025 peak of around $26.
Bitdeer, which operates data centres in the US, Norway and Bhutan, is also conducting a concurrent registered direct share offering tied to a plan to repurchase some of its 2029 convertible notes and intends to use capped call transactions to offset dilution, though that did not prevent the latest sell-off.
At the time of reporting, Bitcoin price was $67,835.40.