Bitdeer Cuts 8.5% Bitcoin Mining Debt with Shares at 60% Discount in $330M Raise
Bitdeer has priced $330 million in convertible bonds due 2031, marking its third such capital raise in less than a year as Bitdeer continues to scale its infrastructure and Bitcoin ASIC ambitions.
The offering, priced at a 4.875% annual coupon, comes amid ongoing investment demands tied to Bitdeer’s SEALMINER ASIC development and data center expansion.
The raise, conducted through a private placement to qualified institutional buyers, was upsized from an initial $300 million target and includes an option for purchasers to buy an additional $45 million in notes.
Bitdeer said in a release on Wednesday that the proceeds will be used for various purposes, including $129.6 million to fund a zero-strike call option and $36.1 million in cash to support a note exchange with holders of Bitdeer’s earlier-issued high-yield convertible debt.
As part of the refinancing, Bitdeer repurchased $75.7 million in principal of its 8.5% convertible notes issued in August 2024—one of the highest-cost financings among public Bitcoin miners at the time. In exchange, the company paid $36.1 million in cash and issued approximately 8.1 million shares, implying a share price of around $5.
That represents a steep discount to Bitdeer’s current market price of $11.80, allowing participating bondholders to exit at favorable terms while helping Bitdeer lower its interest burden and restructure on a more sustainable footing. Bitdeer’s stock price is down 13% on Wednesday after the market opened.
The new notes mature in July 2031 and feature a conversion price of $15.88 per share—a 25% premium to Bitdeer’s closing price on June 17. Beginning in mid-2028, Bitdeer may redeem the notes early if its stock trades at 140% of the conversion price over a defined period, subject to liquidity conditions.
This is Bitdeer’s third convertible bond issuance since going public. In August 2024, it raised $150 million at 8.5% interest, followed by a $360 million raise in November 2024 with a 5.25% coupon—both well above the industry average during that period, when peers secured near-zero interest deals.
The company’s cash needs have grown as it commits capital to vertically integrate its hardware supply chain through SEALMINER, a proprietary Bitcoin mining machine it is developing and manufacturing in-house. The hardware initiative is central to Bitdeer’s hashrate growth strategy, but has weighed heavily on its cash flow. The company incurred over $10 million in interest expenses in the first quarter of 2025 alone.
Bitdeer expects to use the remaining proceeds from the new offering to fund ongoing datacenter construction, further ASIC hardware development, and general working capital. The financing also included a zero-strike call option, designed to hedge dilution risk and facilitate convertible arbitrage strategies by investors.
