Bitdeer Issues $330 Million in Convertible Notes for Expansion

Bitdeer Technologies Group, a Bitcoin mining company based in Singapore, has announced the issuance of $330 million in senior convertible notes. This financial move is aimed at supporting multiple initiatives, including the expansion of data centers and the further development of ASIC-based mining rigs. The convertible notes will mature in 2031, with $130 million allocated to a zero-strike call option transaction and $36 million used to settle concurrent note exchange transactions. The remaining proceeds will be directed towards expanding the company’s operations.

This new offering follows a similar debt raise of $150 million in August 2024. Convertible notes are a form of debt financing that companies issue to raise capital. These notes can typically be converted into equity or an ownership stake in the company at a later date. A senior convertible note has priority over other types of debt issued by the company, providing a layer of financial security.

Bitdeer's decision to raise capital through convertible notes is a strategic move that aligns with its long-term vision. This financial instrument offers the flexibility of being converted into equity at a later date, allowing Bitdeer to secure funding without immediately impacting its equity structure. This provides the company with 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 not only increase the company's operational capacity but also improve its 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.