Shares of Bitdeer Technologies (BTDR) plunged on Thursday on plans to raise $300 million through a private sale of convertible senior notes, along with a separate registered direct offering of Class A shares.
The notes, due in 2032, can be converted into cash, shares or a combination of both at Bitdeer’s option. The underwriter’s greenshoe option is for another $45 million in notes.
The Singapore-based company also intends to sell an unspecified number of Class A shares directly to certain holders of its 5.25% convertible notes due 2029. It plans to use the proceeds from both offerings to fund capped call transactions designed to limit share dilution if the new notes convert, and to repurchase a portion of the 2029 notes in private deals.
The remaining funds will go toward expanding data centers, growing its high-performance computing and AI cloud businesses, and developing ASIC-based mining platforms.
Convertible debt often puts pressure on stocks because investors factor in the risk of future dilution. In simple terms, if the company’s shares increase, bondholders can convert their debt into equity, increasing the number of shares. Bitdeer’s use of capped calls aims to offset some of that effect, although such hedging may add volatility around prices.
The registered direct offering is contingent on the completion of the bond sale and related buybacks, while the bond offering may proceed on its own.
Bitdeer shares fell 17% early in the morning trading below $8 for the first time since April.
