Bitdeer Secures $330 Million in Strategic Convertible Debt Deal
Bitdeer Technologies (BTDR) has successfully completed a $330 million private placement of convertible senior notes due July 1, 2031. The notes carry an annual interest rate of 4.875% and a conversion price of $15.87 per share, representing a 44% premium over Bitdeer’s current market price of around $11.
The structure allows noteholders to convert debt into equity at a favorable rate if BTDR shares rise, providing upside exposure while the company locks in long-term capital at relatively low cost.
Conversion Strategy Includes Smart Hedging via Call Option
To manage potential dilution from note conversions, Bitdeer prepaid $129.6 million to Barclays for a zero-strike call option on approximately 10.2 million shares—around 49% of the full conversion total. This hedging mechanism ensures Bitdeer can fulfill conversions without issuing new stock, thereby reducing equity dilution and protecting shareholder value.
The bond’s conversion rate is 62.9921 Class A shares per $1,000 of principal. Full conversion could result in the issuance of up to 20.8 million new shares, but the call option effectively covers nearly half of that obligation.
Proceeds Target Core Growth: Datacenters and ASIC R&D
The capital raised will be strategically deployed:
- $129.6 million: To fund the zero-strike call option
- $36.1 million: For concurrent note exchange cash settlements
- Remaining funds: Allocated to datacenter expansion, advanced ASIC chip development, and general working capital
Bitdeer is currently focused on next-generation ASIC chip designs that aim to significantly improve mining efficiency. The company expects these innovations to enhance the competitiveness of its mining rigs amid a tightening industry landscape.
Market Response and Strategic Positioning
Shares of BTDR were slightly lower following the announcement, but analysts view the move as a forward-looking strategy that positions Bitdeer for scalable growth. With efficient capital usage and long-term debt maturity, Bitdeer strengthens its standing as a key player in the Bitcoin mining and hardware development space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.