Bitdeer Raises $330 Million for Data Center Expansion, ASIC Development

Bitdeer Technologies Group, a prominent Bitcoin mining company, has announced plans to raise $330 million through a convertible notes offering. This move comes as the company seeks to expand its data centers, develop ASIC-based mining rigs, and bolster its working capital. The offering, initially announced at $300 million, was upsized by $30 million, with an additional option for up to $45 million in principal notes to initial purchasers. The 4.875% convertible notes are due in 2031, with the sale expected to close by June 23.

Unlike other crypto-adjacent companies that use convertible notes to acquire more Bitcoin, Bitdeer has different plans for the funds. The company intends to allocate $129.6 million to pay zero-strike call options and $36.1 million to pay cash considerations. The remaining proceeds will be used for data center expansion, ASIC-based mining rig development and manufacture, as well as working capital and other general corporate purposes. The company did not confirm whether general corporate purposes may include the addition of Bitcoin.

Bitdeer's stock price has been on a downward trend, with shares falling further on Wednesday, extending recent losses. The company's stock has seen a 23% decline over the past month. Despite not being known for aggressive Bitcoin-buying sprees, Bitdeer holds 1,351 Bitcoin, which is valued at around $140 million based on the current Bitcoin price. This marks a significant increase from its December holdings and a boost in Bitcoin mined from April to May. However, this increase did not prevent the company's shares from finishing the day down more than 7% to $11.80.

Bitdeer's financial strategy includes the issuance of senior convertible notes, which provide the company with the necessary financial resources to pursue its growth objectives. This form of debt financing offers the flexibility of being converted into equity at a later date, allowing Bitdeer to secure funding without immediately impacting its equity structure. The company's decision to raise capital through convertible notes aligns with its long-term vision and provides the financial agility to pursue growth opportunities without the immediate dilution of shareholding.

The expansion of Bitdeer's operations is expected to have a positive impact on the company's market position. By investing in AI and mining technologies, Bitdeer aims to enhance its competitive edge and drive innovation in the industry. The development of new data centers will increase the company's operational capacity, efficiency, and scalability. Additionally, the advancement of ASIC technology will enable Bitdeer to stay at the forefront of technological developments, ensuring that it remains a leader in the mining sector.

In May, Bitdeer's Q1 2025 earnings report revealed a year-over-year drop in revenue of 41%, along with a $3.2 million operating loss for the quarter. Despite this, the company reported a net income of over $400 million, partially due to gains on warrants and convertible notes issued to Tether. This financial performance highlights the company's ability to navigate market challenges while maintaining profitability.

Bitcoin mining companies have continued to raise capital through the first half of 2025, signaling increased competition in the industry. This fundraising activity coincides with a rising hashrate and growing adoption of digital assets by institutional investors. The hashrate measures the total computational power being used to secure the network through cryptographic puzzles required to validate transactions and block generation. Generally, the hashrate tends to increase over time, driven by rising Bitcoin prices and broader adoption, incentivizing more miners to enter the network. In turn, the growing demand for computational efficiency often increases the need for capital investment.

The successful completion of this convertible note offering will provide Bitdeer with the financial resources needed to execute its growth strategy. The company's focus on AI and mining, coupled with its commitment to operational excellence, positions it well for future success. As Bitdeer continues to expand its operations, it is poised to make significant strides in the industry, solidifying its position as a key player in the mining and AI sectors.