Bitdeer Shares Drop 22% After Pricing $400M Convertible Notes and $149M Equity Offering
Bitdeer (NASDAQ: BTDR) shares fell 22% on Thursday after the company announced a combined financing package, much of which will be used to refinance existing obligations at a higher interest rate.
The Singapore-based Bitcoin mining firm priced $400 million in 4.00% convertible senior notes due 2031 in a private placement. Purchasers have a 13-day option to buy an additional $60 million.
The notes carry a 4% coupon, mature in 2031, and are convertible at an initial price of $17.77—representing a 27.5% premium to the equity offering price. Bitdeer may redeem the notes beginning in late 2028 if certain share-price and liquidity conditions are met.
In a parallel move, Bitdeer priced a registered direct offering of 10.66 million Class A ordinary shares at $13.94 per share. The equity sale was made to certain holders of its outstanding 5.25% convertible senior notes due 2029, allowing those creditors to receive shares and unwind hedges tied to the older notes.
Together with a portion of the proceeds from the new convertible offering, the equity sale will fund the repurchase of $200 million in outstanding principal amount of the 5.25% 2029 notes for roughly $267.9 million in cash.
Bitdeer expects net proceeds of about $388 million from the new notes, or up to $446 million if the full allotment is exercised. The remaining funds will support datacenter expansion, ASIC development and manufacturing, and the growth of its HPC and AI cloud operations.
Bitdeer led a broader sell-off in bitcoin mining stocks. Bitfarms followed with a 16% drop after reporting third-quarter earnings and outlining plans to wind down its bitcoin mining business by 2027 while beginning HPC conversion at its Washington State facility.
