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The Singapore-based bitcoin miner and AI data center enterprise is seeking capital to buy back notes and support expansion.
Bitdeer (Bitdeer, modified by CoinDesk)
Key Information:
- Bitdeer announced its intention to raise $300 million through convertible notes.
- The firm also plans a registered direct sale of shares associated with a note repurchase.
- Shares dropped 17% to a ten-month low.
Bitdeer Technologies (BTDR) shares declined significantly on Thursday as the company revealed plans to raise $300 million via a private offering of convertible senior notes, along with a distinct registered direct sale of Class A shares.
The notes, maturing in 2032, may be converted into cash, shares, or a combination of both at the discretion of Bitdeer. The underwriter’s greenshoe option allows for an additional $45 million in notes.
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The Singapore-based firm also aims to sell a certain number of Class A shares directly to select holders of its 5.25% convertible notes maturing in 2029. Proceeds from both offerings are intended to fund capped call transactions aimed at minimizing share dilution should the new notes convert, in addition to repurchasing a portion of the 2029 notes through private arrangements.
Remaining funds will be allocated towards the expansion of data centers, enhancing its high-performance computing and AI cloud services, and developing ASIC-based mining hardware.
Convertible debt can exert downward pressure on shares as investors consider the potential for future dilution. Essentially, if the company’s stock appreciates, noteholders may convert their debt into equity, thus increasing the number of shares. Bitdeer’s strategy of employing capped calls seeks to mitigate some of this impact, although such hedging might introduce price volatility.
The registered direct sale is contingent on the completion of the notes offering and associated repurchases, while the notes offering can advance independently.
Bitdeer's shares fell 17% in early morning trading, dipping below $8 for the first time since April.
