Bitdeer Stock Drops 17% on $300M Convertible Note Offering

Crypto News

Shares in Bitdeer Technologies Group fell 17.38% on Thursday after the Singapore-headquartered Bitcoin

and AI infrastructure firm announced a $300 million convertible senior note offering in a private placement.

The offering includes an option for purchasers to acquire an additional $45 million in notes. The notes are due to settle in 2032, carry semiannual interest payments, and can be converted into cash, shares, or a combination of both. As senior unsecured obligations, holders have priority over other creditors in the event of bankruptcy.

Bitdeer intends to use the proceeds to fund data center expansion, AI cloud growth, development of crypto mining hardware, and general corporate purposes. The company operates data centers in the United States, Norway, and Bhutan.

This is Bitdeer's second convertible note offering. A prior $150 million offering in April 2024 triggered an 18% stock decline at the time, a pattern that has repeated with the latest raise. Convertible notes function as loans that investors can convert into

, and the prospect of future share dilution typically weighs on stock prices when such instruments are announced.

To manage dilution risk, Bitdeer is running concurrent capped call transactions alongside the offering, a structure commonly used to limit the dilutive impact of note conversions. The company is also conducting a registered direct share offering tied to a plan to repurchase a portion of its existing convertible notes due in 2029.