Bitdeer's Zero-BTC Treasury: A Record $325M Note Sale and 17% Stock Drop

The scale of Bitdeer's liquidation is stark. The company sold its entire treasury of 1,132.9 BTC, completing an eight-week drawdown from roughly 2,000 BTC at the end of December to zero by February 20. This wasn't just selling production; it was a forced depleting of reserves, with sales exceeding production for three consecutive months.

The move coincided directly with a major capital raise and triggered a severe market reaction. The liquidation announcement came one day after the company announced a $300 million convertible note offering, later upsized to $325 million. The stock price collapsed, falling 17% to a 10-month low on February 19. This sharp drop signals investors viewed the dual actions-a massive BTC sale and a high-coupon debt offering-as a clear signal of severe liquidity pressure.

The financial strain is quantified in the production vs. sales data. In January alone, Bitdeer sold 1,155 BTC while producing 668 BTC, meaning it sold about 1.73 times its monthly output. This pattern of selling reserves faster than they were being replenished forced the company to zero out its treasury entirely, leaving it with no buffer against Bitcoin's price volatility.

The Funding Flow: Convertible Notes and Cash Burn

The company's new funding source is a $325 million convertible note offering, with a 5.00% annual interest rate and a maturity date of 2032. These are senior unsecured obligations, meaning they rank ahead of equity but behind secured debt. The company has the option to increase the offering by up to $50 million, bringing the total potential raise to $375 million. The funds are explicitly earmarked for data center expansion, AI cloud growth, and ASIC development.

This debt adds a significant fixed cost to the balance sheet. Bitdeer must pay $16.25 million in interest annually, regardless of Bitcoin's price or its own mining profitability. This leverage contrasts sharply with its new operational policy: the company now sells every Bitcoin it mines on a same-week basis. This diverges from peers like MARA and Riot, which hold substantial treasuries as a buffer and a strategic asset. By selling production immediately, Bitdeer has eliminated its last financial cushion, making it entirely dependent on the cash flow from its new ventures to service this debt.

The bottom line is a capital-intensive pivot. The convertible notes provide a large, non-dilutive cash infusion for growth, but they lock in a 5% cost of capital for six years. For the strategy to work, the AI and ASIC businesses must scale quickly to generate returns that not only cover this interest but also fund the company's operations and debt service. The market's 17% stock drop suggests investors see this as a high-risk bet on future growth, with the current treasury liquidation leaving no room for error.

Market Context and Forward Catalysts

The sale occurred against a weak operational backdrop. Last week, the USD hashprice fell 4.1% to $34.05 per PH/s/day. This decline in the core mining revenue metric compounds the pressure from Bitdeer's own production shortfall, where sales consistently outpaced output. The company is now selling its entire weekly production, meaning its cash flow is directly tied to this volatile, down-trending metric.

The immediate catalyst is the closing of the capital raise. The $325 million convertible note offering is set to close on February 24, 2026. This infusion of cash is the linchpin for the company's pivot to AI and ASIC development, providing the necessary funds to execute its expansion plans without further treasury depletion.

The key watchpoint is revenue coverage. The new AI and data center ventures must generate enough cash flow to service the 5.00% annual interest on the notes-$16.25 million per year-while also funding all other operations. The market's sharp reaction suggests investors see this as a high-stakes bet, with the company's entire future cash flow now on the line to cover a fixed, non-negotiable cost.