Bitdeer Technologies Group triggered a sharp market selloff after announcing a $300 million private placement of convertible senior notes due 2032. The Singapore-based Bitcoin miner and AI infrastructure firm also granted initial purchasers a greenshoe option for an additional $45 million, potentially bringing the total offering to $345 million.
The announcement sent Bitdeer's stock (BTDR) tumbling as much as 18% in pre-market trading, falling from $9.61 to $7.88. The shares closed down 17.38% at $7.94, extending a year-to-date decline of 29% and a nearly 70% drop from its all-time high of around $26 set in January 2025. This negative reaction mirrors the company's previous experience; an April 2024 $150 million convertible note offering also triggered an 18% stock slump.
Investors focused on potential equity dilution, a common concern with convertible debt, despite Bitdeer's plan to enter into capped call transactions to hedge against this risk. The company also disclosed a contingent registered direct share offering tied to a plan to repurchase a portion of its existing 5.25% convertible notes due 2029, adding further uncertainty around share issuance.
Proceeds from the offering are earmarked to accelerate Bitdeer's expansion into high-performance computing (HPC) and AI infrastructure, fund data center growth, develop new crypto mining rigs, and cover general corporate expenses. The company operates data centers in the U.S., Norway, and Bhutan.
The market's negative reaction overshadowed strong fourth-quarter financial results. Bitdeer reported Q4 revenue of $224.8 million, a 226% increase from $69 million a year earlier. The company swung to a net profit of $70.5 million from a loss of $531.9 million in the prior-year quarter. Operationally, it mined 1,673 Bitcoins during the quarter, up from 469 a year earlier, and grew its total managed hashrate to 71 EH/s. As of December 31, Bitdeer held about 2,000 BTC, though recent data suggests that figure has since fallen to roughly 943 BTC following asset sales to fund expansion.
