Bitdeer Technologies Group (BTDR) experienced a notable decline in its stock price, dropping 8.43% to $11.63 during early trading on June 18, 2025. This movement came in response to the company’s announcement of a $330 million convertible senior notes offering. Although the stock showed signs of recovery later in the session, it remained below the $11.75 mark, reflecting investor caution amid the new financing initiative.
Details of the Convertible Notes Offering
The newly announced capital raise was structured as a private placement of convertible notes directed primarily at institutional buyers. This offering was conducted under Rule 144A of the Securities Act, which allows for the sale of securities to qualified institutional investors without public registration.
Key terms of the offering include a 4.875% annual interest rate and a maturity date set for July 2031. The conversion price was established at approximately $15.88 per share, representing a 25% premium over the previous closing price. This premium offers potential upside for note holders should the company’s share price appreciate significantly.
Additionally, the underwriters were granted a 13-day option to purchase up to an additional $45 million in notes. The company also reserved the right to redeem the notes early after July 6, 2028, depending on market conditions and liquidity requirements.
Use of Proceeds and Strategic Reinvestment
Bitdeer anticipates net proceeds of around $319.6 million after accounting for underwriting fees and related expenses. The allocation of these funds highlights the company’s focus on strategic growth and financial optimization:
- $129.6 million will fund a zero-strike call option transaction, enabling Bitdeer to acquire 10.2 million shares without additional cost.
- $36.1 million is allocated to fulfill obligations from concurrent note exchange agreements.
- $75.7 million will be used to repurchase outstanding 8.50% convertible notes due in 2029, through a combination of cash and share issuance.
The remainder of the capital will support the expansion of datacenter operations, development of ASIC mining rigs, and enhancement of AI infrastructure. This reinvestment strategy is aligned with Bitdeer’s long-term vision to strengthen its position in both the cryptocurrency mining and artificial intelligence sectors.
Market Response and Trading Activity
The dip in Bitdeer’s stock coincided with heightened trading activity, likely influenced by hedging strategies related to the convertible notes. Large-scale transactions, including adjustments to derivative positions by institutional counterparties, often lead to short-term price volatility.
Market analysts also noted that participants in the note exchange might unwind existing hedge positions, contributing to higher trading volumes. While such activity can exert downward pressure on share prices, Bitdeer’s management emphasized that the financing move is aimed at long-term value creation.
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Expansion and Industry Positioning
Bitdeer continues to pursue an aggressive expansion strategy, with ongoing projects in Texas, Norway, and Bhutan. The company has recently launched new SEALMINER mining rigs and introduced an AI cloud platform powered by large language models (LLMs).
Previous fundraising efforts, including capital infusions from Tether and a debt facility arranged with Matrix Finance, have further solidified Bitdeer’s financial foundation. Under the leadership of Jihan Wu, a co-founder of Bitmain, the company remains focused on innovation and scaling its operations across key global markets.
Frequently Asked Questions
What are convertible notes?
Convertible notes are a type of debt that can be converted into equity, usually at a predetermined price. They offer investors fixed interest payments along with the potential to participate in the company’s equity upside.
Why did Bitdeer’s stock price drop after the announcement?
Stock prices often react negatively to new debt issuances due to potential dilution concerns and increased leverage. In this case, the decline was also influenced by hedging activities and short-term market sentiment.
How will the raised capital be used?
The proceeds will help fund share acquisitions via call options, facilitate note exchanges, repurchase existing debt, and support expansion in data centers, mining hardware, and AI infrastructure.
What is a conversion premium?
A conversion premium is the percentage above the current stock price at which convertible notes can be exchanged for shares. Bitdeer’s 25% premium offers note holders an incentive based on future share performance.
Is Bitdeer focusing only on Bitcoin mining?
No. While Bitcoin mining remains a core business, Bitdeer is also investing heavily in artificial intelligence and cloud computing services, diversifying its technological portfolio.
Who is leading Bitdeer Technologies?
The company is led by Jihan Wu, a well-known figure in the crypto industry and co-founder of Bitmain. His leadership aligns with Bitdeer’s dual focus on blockchain and AI innovation.