Bitdeer Secures $330 Million in Convertible Notes—More Than Expected
Bitdeer, the Singapore-based bitcoin mining firm, just pulled off a bigger-than-expected fundraising move. The company priced a private offering of $330 million in convertible notes, upsizing it from the original $300 million target. Not bad for a market that’s been anything but predictable lately.
The notes, which carry a 4.875% interest rate, are set to mature in 2031. They’re being sold to institutional buyers, with an option for purchasers to snap up another $45 million within 13 days. If all goes as planned, the deal should close by late June next year.
How the Conversion Works—And Why It Matters
Investors can convert these notes into Bitdeer’s Class A shares at around $15.88 each—a 25% premium over last week’s closing price. That’s a decent bump, but whether it’ll look like a bargain in seven years is anyone’s guess.
After fees, Bitdeer expects to pocket roughly $319.6 million, or up to $363.3 million if the extra $45 million gets scooped up. So where’s the money going? A chunk of it—$129.6 million—is earmarked for what’s called a “zero-strike call option,” a hedging move tied to the notes. Another $36.1 million will go toward swapping out some older debt. The rest? More data centers, new mining rigs, and the usual corporate expenses.
The Fine Print: Hedging and Share Swaps
Here’s where things get a little technical. Bitdeer also struck a deal with one of the note purchasers to buy what’s essentially an insurance policy on its own stock. They paid $129.6 million for the right to receive about 10.2 million shares later on. It’s a hedge, plain and simple, but it could stir up some volatility in Bitdeer’s stock price down the line.
Meanwhile, the company’s been busy cleaning up its balance sheet. It swapped out $75.7 million of its older, higher-interest notes (from 2029) for $36.1 million in cash and 8.1 million shares. Not a bad trade, though unwinding those old hedges might put some pressure on the stock.
A Rocky Year—But Not All Bad News
Bitdeer’s had a tough run lately. Shares dropped 6.5% in a single day last week, and they’re down over 14% in the past five sessions. Since January, the stock’s lost nearly half its value.
But here’s the thing: despite the recent slump, it’s still up 27% since going public. That’s the weird thing about crypto stocks—they can look like a disaster one minute and a comeback story the next. Whether this cash injection changes the trajectory, though, is something we’ll have to wait and see.
