Bitdeer Stock Plunges 18% Following $300 Million Convertible Note Announcement

Bitdeer Technologies experienced a significant stock decline in pre-market trading after announcing a private placement of $300 million in convertible senior notes maturing in 2032. The Singapore-based bitcoin mining and AI data center company's shares fell more than 18% in early trading, dipping below $8 for the first time since April, before closing down approximately 15% for the day.

The financing structure includes an option allowing initial purchasers to acquire an additional $45 million in notes, potentially bringing the total offering to $345 million. These instruments will be convertible into cash, Class A ordinary shares, or a combination thereof at the company's discretion.

Market reaction reflects typical investor concerns surrounding convertible debt, as such instruments can dilute existing shareholders when noteholders exercise conversion rights. To mitigate this risk, Bitdeer plans to implement capped call transactions with financial institutions.

Concurrently, the company announced a separate registered direct offering of Class A shares to certain holders of its existing 2029 convertible notes. Proceeds will primarily fund the capped call transactions, repurchase portions of the 2029 notes, and support expansion of data center infrastructure and AI cloud operations.

The announcement follows Bitdeer's recent fourth-quarter results showing revenue of $224.8 million, up 226% year-over-year, and net profit of $70.5 million.