Bitdeer Technologies Group (BTDR) shares tumbled as much as 19.23% after the bitcoin mining company disclosed two major developments: a planned $1 billion share offering and a widened second-quarter net loss. The one-two punch rattled investors, pushing the stock to $8.79 in the session following the announcements.
The sell-off began after Bitdeer filed a prospectus with the U.S. Securities and Exchange Commission to sell up to $1 billion in new shares. A capital raise of this size immediately raised dilution concerns, as existing shareholders would see their ownership spread across a larger share count — a perennial worry in the capital-intensive mining sector. Bitdeer had previously tapped debt markets, securing a $325 million convertible notes deal and a $200 million credit line from Matrix Finance, but an equity offering on this scale signaled a heightened need for cash.
Adding fuel to the fire, Bitdeer’s Q2 report showed that soaring costs were eroding even its impressive top-line growth. Revenue jumped 47% year-over-year to $228.8 million, driven by a surge in self-mining income to $168.4 million as the company mined 2,694 Bitcoin (up from 565 BTC a year ago). However, cost of revenue ballooned to $237.3 million from $143.6 million, resulting in a gross loss of $8.5 million and a negative gross margin of -3.7% (compared to a positive 7.7% in the prior-year quarter). The net loss deepened to $92.3 million from $62.9 million, as higher electricity, depreciation, and R&D costs — totaling $36.1 million — weighed heavily.
The company’s mining expansion brought total managed hash rate to 86.1 EH/s, up from 30.6 EH/s year-over-year, with 289,000 rigs under management. While adjusted EBITDA improved to $31.1 million, the scale of new investments — including AI and high-performance computing infrastructure across Norway, Ohio, Texas, and other sites — drove borrowings to $1.8 billion by June’s end. Cash and equivalents stood at $496.3 million, with digital assets adding $196.9 million. The Tydal, Norway project remains central to Bitdeer’s AI strategy, with first-phase service targeted for Q4 2026 and phase two in early 2027.
Analysts noted that the share offering, rather than any bitcoin price movement, was the immediate catalyst for the stock’s decline. The drop reflects company-specific balance-sheet and dilution risks, not a broader crypto market signal. Mining investors remain focused on how financing moves affect per-share value and leverage, particularly as Bitdeer attempts to fund its growing self-mining and AI ambitions.
