Bitdeer Stock Falls as Bitcoin Miner Aims to Raise $330 Million

In brief

Singapore-based Bitdeer is seeking to raise $330 million via a convertible notes offering.
Unlike popular crypto treasury companies, it won’t use the funds to acquire more BTC.
Bitdeer shares continued falling Wednesday, pushing their monthly decline to 23%.

Publicly traded Bitcoin miner Bitdeer aims to raise $330 million through a convertible notes offering, the firm announced on Wednesday, with its stock price falling further to extend recent losses.

The offering was upsized $30 million from the private placement’s principal amount of $300 million, which was initially announced on Tuesday. Furthermore, the firm will offer the option of up to an additional $45 million in principal notes to initial purchasers.

The 4.875% convertible notes will be due in 2031, with their sale expected to close by June 23, the company said in a statement.

Among crypto-adjacent companies, raising funds via convertible notes has often been used as a vehicle for Bitcoin accumulation, a move popularized by Bitcoin treasury company Strategy (formerly MicroStrategy).

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However, according to the outlined plans for the proceeds of this offering, Bitdeer has no intention of using the funds to add the top crypto asset to its balance sheet.

Instead, the Singapore-based mining firm will use $129.6 million to pay zero-strike call options, $36.1 million to pay cash considerations, and the remaining proceeds for “data center expansion, ASIC-based mining rig development and manufacture, as well as working capital and other general corporate purposes.”

A representative for the firm did not respond to Decrypt’s question about whether general corporate purposes may include the addition of Bitcoin.

Though not known for aggressive Bitcoin-buying sprees like rival miners MARA and Riot Platforms, Bitdeer holds 1,351 Bitcoin according to its May investor report, valuing its holdings at around $140 million based on the current Bitcoin price.

That marks more than a 100% jump from its December holdings mark, and up more than 300 Bitcoin since its March report.

The firm also reported an 18% jump in its Bitcoin mined from April to May, but the boost did not help shares of BTDR, which finished the day down more than 7% to $11.80. Bitdeer is down 12% over the past week and 23% in the last month.

That extends losses that shares in the company have seen on the year, highlighted by a tough March, which JP Morgan said was the worst ever for publicly traded Bitcoin miners.

Edited by Andrew Hayward