Bitdeer Shares Slide 17% After $300 Million Convertible Note Plan Raises Dilution Concerns

Shares of Bitdeer Technologies dropped 17% to a 10 month low after the company unveiled plans to raise $300 million through a private placement of convertible senior notes due 2032. The Singapore based bitcoin miner and AI data center operator also disclosed a separate registered direct offering of Class A shares tied to a repurchase of existing debt.

The new notes can be settled in cash, shares, or a combination of both, at the company’s discretion. An additional $45 million may be issued if underwriters exercise a greenshoe option. Markets reacted swiftly, with the stock falling below $8 for the first time since April.

Capital Raise to Fund Note Repurchase and Expansion

Bitdeer intends to use proceeds from the offering to repurchase a portion of its 5.25% convertible notes due 2029 and to finance capped call transactions designed to limit potential share dilution if the new notes are converted. Remaining capital will support expansion of data centers, development of ASIC based mining rigs, and growth of high-performance computing and AI cloud operations.

Convertible offerings often weigh on share prices as investors factor in the risk of increased equity supply. While capped call strategies can reduce dilution, they may also contribute to short-term trading volatility as markets adjust to new pricing dynamics.

Disclaimer

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