Shares of Bitdeer Technologies Group plunged 17% on Thursday after the crypto mining and AI infrastructure company announced a $300 million convertible senior note offering. The stock closed at $7.94, slipping further to $7.89 in after-hours trading.
The company revealed it plans to issue $300 million in convertible senior notes through a private placement, with an option for initial purchasers to buy an additional $45 million. This marks Bitdeer’s second convertible note offering. In April 2024, the firm raised $150 million in a similar deal, which also triggered a sharp 18% drop in its share price.
Year to date, Bitdeer stock is down 29%. Since reaching an all-time high of around $26 in January 2025, shares have fallen nearly 70%, reflecting growing investor concerns over dilution and broader market volatility in the crypto sector.
Convertible senior notes are a form of debt that investors can later convert into company shares. These notes typically carry semiannual interest payments and rank above common equity in the event of bankruptcy. However, they often pressure stock prices because conversion into shares increases the total share count, diluting existing shareholders.
Bitdeer’s new notes will mature in 2032 and are classified as senior unsecured obligations. The company stated that noteholders will have the option to convert the debt into cash, shares, or a combination of both.
Bitdeer Plans Data Center Expansion and AI Growth
Bitdeer said it intends to use the proceeds from the offering to expand its data center footprint, grow its AI cloud services, develop crypto mining rigs, and support general corporate operations.
Headquartered in Singapore, Bitdeer operates data centers across the United States, Norway, and Bhutan. The company has been positioning itself as both a Bitcoin mining operator and an emerging AI infrastructure provider, aiming to diversify revenue streams beyond crypto mining alone.
In addition to the new debt issuance, Bitdeer is launching a concurrent registered direct share offering. Part of the capital raised will go toward repurchasing a portion of its existing convertible notes due in 2029.
The company also announced plans to enter into “capped call transactions,” a strategy commonly used alongside convertible debt offerings. These derivative contracts are designed to offset potential shareholder dilution if the notes are converted into equity. Despite this effort, investor sentiment remained cautious, contributing to the steep sell-off.
