Bitdeer Secures $330 Million in Convertible Notes—More Than Expected
Bitdeer Technologies just pulled off a bigger-than-expected fundraising move. The Singapore-based Bitcoin miner initially aimed for $300 million in convertible notes but ended up pricing $330 million instead. The notes, which carry a 4.875% interest rate, are set to mature in 2031.
What’s interesting here is who’s buying—qualified institutional investors, not your average retail traders. And there’s a twist: the initial purchasers have a 13-day window to snap up another $45 million if they want. The deal should finalize by June 23 next year, assuming nothing derails it.
How the Conversion Works (And Why It Matters)
These notes can be swapped for Bitdeer’s Class A shares at around $15.88 each—a 25% bump over last Monday’s closing price. That premium might seem steep, but it’s pretty standard for deals like this.
After fees, Bitdeer expects to pocket roughly $319.6 million, or up to $363.3 million if that extra $45 million gets scooped up. So where’s the money going? A chunk—$129.6 million—is tied to a call option deal with one of the initial buyers. Another $36.1 million will cover cash payments for older notes being exchanged. The rest? Data centers, mining rig development, and general operations.
The Fine Print: Hedging and Share Price Risks
Here’s where things get technical. Bitdeer also locked in a zero-strike call option, paying that $129.6 million upfront for the right to 10.2 million shares later. It’s a hedge, basically—something to offset risks for noteholders. But it could stir up volatility in Bitdeer’s stock or the notes themselves.
Meanwhile, the company swapped out about $75.7 million of its older 8.5% notes (due in 2029) for cash and 8.1 million shares. The catch? Investors dumping their hedges on those old notes might send Bitdeer’s share price swinging.
A Rocky Year, But Not All Bad News
Bitdeer’s stock (BTDR) has had a rough go lately—down 6.5% in a day, 14% over the past week, and a brutal 45% since January. Yet somehow, it’s still up 27% since its debut. Go figure.
Maybe this cash infusion helps steady the ship. Or maybe it’s just buying time. Either way, Bitdeer’s betting big on its next chapter—whether the market’s ready or not.
