Bitdeer's $400M AI and Mining Bet Stumbles as Losses Widen and Delays Mount

Bitdeer Technologies Group (NASDAQ: BTDR) has announced a $400 million private placement of convertible senior notes, a strategic move to accelerate its expansion in Bitcoin mining and AI cloud services according to reports. The Singapore-based company, which operates datacenters in the U.S., Norway, and Bhutan, plans to use the proceeds to fund infrastructure development, ASIC-based mining rig production, and growth in its high-performance computing (HPC) and AI cloud operations.

The offering, which matures in 2031, includes an option for initial purchasers to acquire an additional $60 million in notes.

The fundraising effort comes amid significant stock volatility. Shares of Bitdeer plummeted nearly 20% in pre-market trading according to market data, reflecting investor concerns over the company's recent financial performance and operational challenges. In Q3 2025, Bitdeer reported a net loss of $266.7 million, driven by non-cash derivative losses from convertible debt revaluation, despite a 173.6% year-over-year revenue increase to $169.7 million. The loss widened from $50.1 million in the same period in 2024 according to financial reports.

Bitdeer's convertible notes will be senior unsecured obligations with semiannual interest payments. The company plans to use the funds to offset potential dilution through capped call transactions and to repurchase portions of its existing 5.25% convertible senior notes due in 2029 according to financial sources. This debt restructuring is paired with a registered direct offering of Class A ordinary shares, which will be sold to holders of the 2029 notes. The transactions are contingent on one another, with the notes offering not reliant on the completion of the share sale or repurchase.

The company's expansion plans align with its broader strategy to leverage AI-driven demand for computing power. Bitdeer has allocated 200 MW of power capacity to AI cloud services, aiming for an annualized revenue run-rate exceeding $2 billion by 2026. As of October 2025, the firm had deployed 584 GPUs, with 87% utilization, and secured orders for NVIDIA's next-generation GB300 and B300 systems.

Despite its ambitious roadmap, Bitdeer faces hurdles. The development of its next-generation SEAL04 ASIC chip, critical for energy-efficient mining, has been delayed due to design complexities. The chip's verification showed 6-7 J/TH efficiency in testing, but mass production is now targeted for Q1 2026. Additionally, the company's U.S. manufacturing costs for mining rigs are higher than in other regions, and supply chain bottlenecks for datacenter equipment threaten project timelines.

Bitdeer's move reflects a broader trend among Bitcoin miners pivoting to AI and HPC to diversify revenue streams. Competitors like MARA Holdings and TeraWulf have similarly pursued AI infrastructure deals. However, Bitdeer's stock has underperformed, falling 21% year-to-date despite a Q3 revenue beat. Analysts remain divided, with some citing the company's vertical integration and AI ambitions as long-term strengths, while others highlight execution risks according to financial analysis.

Barclays and ICR Capital are advising the transactions, with a preliminary prospectus supplement expected to be filed with the SEC according to financial sources. The outcome of the fundraising will be pivotal for Bitdeer's ability to scale its AI and mining operations while managing its debt structure.