Bitdeer Raises $330 Million in Convertible Bonds for Expansion

Bitdeer, a prominent Bitcoin mining company, has successfully completed a $330 million convertible bond issuance. The bonds, which carry a coupon rate of 4.875% and mature in 2031, were issued through a private placement directed at qualified institutional investors. This fundraising effort exceeded the initially planned $300 million target and included a $45 million greenshoe option. The funds raised will be allocated towards the development of the SEALMINER mining rig and the expansion of Bitdeer's data centers.

According to the announcement, $129.6 million of the raised funds will be used for at-the-money call option hedging. Additionally, $36.1 million in cash will be utilized to refinance previously issued high-interest 8.5% convertible bonds. As part of its debt restructuring efforts, Bitdeer has also repurchased $75.7 million of convertible bonds that were issued in August 2024. These bonds previously carried the highest interest rate among publicly listed mining companies. The repurchase was completed through a combination of cash payments and the issuance of 8.1 million shares, with an implied stock price of approximately $5—representing a 57% discount to the current market price. This move allowed bondholders to exit with a profit while significantly reducing the company’s interest burden.

This convertible bond issuance marks the third time in the past year that Bitdeer has raised funds through such an offering. The successful completion of this issuance underscores the company's strategic focus on expanding its mining capabilities and data center infrastructure. The funds will be instrumental in advancing the development of the SEALMINER mining rig, which is expected to enhance Bitdeer's competitive edge in the Bitcoin mining industry. Additionally, the expansion of data centers will support the company's growing operational needs and ensure efficient mining operations.

The debt restructuring efforts, including the repurchase of high-interest bonds, demonstrate Bitdeer's commitment to optimizing its financial structure. By reducing its interest burden, the company can allocate more resources towards innovation and growth. The repurchase of bonds at a discounted price also provides an opportunity for bondholders to realize profits, further strengthening Bitdeer's relationships with its investors. Overall, these strategic moves position Bitdeer for sustained growth and leadership in the Bitcoin mining sector.