Bitdeer Secures $150M for Expansion

Bitdeer’s stock drops 18% to $6.33 after announcing a $150M convertible notes offering to fund ASIC mining rigs and data center expansion.

The news of Bitdeer Technologies Group’s senior convertible notes issue caused its stock price to fall to $6.33.

Bitdeer Technologies Group, a Singapore-based cryptocurrency mining company, revealed plans to create ASIC-based mining rigs and expand its data center through a proposed public offering of $150 million convertible notes, with a deadline of 2029.

The company announced on August 15 that the notes would be senior, unsecured obligations of the business. Unless they are converted, redeemed, or bought back before then, the notes will maturity on August 15, 2029.

A senior convertible note is one kind of financial security that can eventually be converted into equity. It’s a type of loan for the business that, over time, may also result in interest payments to the investor. A senior convertible note is the precedence over all other debt securities that a corporation issues.

Bitdeer stated that investors might immediately convert their notes following maturity on the second scheduled trading day.

When Bitdeer Matures, it offers Class A ordinary shares.

Bitdeer will provide investors with Class A ordinary shares or a mix of cash and Class A ordinary shares upon conversion of the notes. The cryptocurrency mining company declared on August 16 that the notes would have a yearly interest rate of 8.5%.

The company declared that it would use the money received from the offering to grow and advance its company. “The company intends to use the net proceeds from the offering for working capital and other general corporate purposes, as well as data center expansion and ASIC-based mining rig development.”

Based on market value, Bitdeer Technologies is the world’s eleventh-largest cryptocurrency mining firm. Based on CompaniesMarketCap statistics, the company’s valuation of approximately $870 million places it above rivals such as BitFufu and Bit Digital.

Bitdeer’s Stock Falls 18% After the Declaration.

As a result of the convertible note sale, The stock price fell by more than 18%, according to data from Google Finance. The stock had a more significant price drop on the 5-day chart, falling from $8.26 on August 9 to $6.33 as of this writing, or 23%.

Following the announcement of the convertible notes offering, Bitdeer is not the only mining company to see a decline in its stock price. Stock prices of Bitcoin mining company Core Scientific fell 10% on August 14 following the announcement of a $400 million senior convertible note sale.