Bitdeer Raises $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 center infrastructure 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 previous $150 million debt raise in August 2024. Convertible notes are a form of debt financing that companies issue to raise capital, with the option to convert them into equity or an ownership stake in the company at a later date. Senior convertible notes have priority over other types of debt issued by the company, providing an additional layer of security for investors.

Bitdeer's decision to raise capital through convertible notes is a strategic move that aligns with its long-term vision. The funds will be used to enhance the company's mining capabilities, advance ASIC technology, and optimize its balance sheet. The development of new data centers will increase Bitdeer's Bitcoin mining output, while the advancement of ASIC technology will improve the efficiency and profitability of its mining operations. Additionally, the funds will help the company manage its financial obligations more effectively, ensuring liquidity and financial stability in the volatile cryptocurrency market.

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 generate significant returns despite operational challenges, positioning it well for future growth.

Bitdeer's move to raise capital through convertible notes is part of a broader trend in the Bitcoin mining industry. Companies in this sector have been actively raising funds to support their operations and expansion plans. This fundraising activity signals increased competition in the industry, coinciding with a rising hashrate and growing adoption of digital assets by institutional investors. The hashrate, which measures the total computational power used to secure the Bitcoin network, tends to increase over time, driven by rising Bitcoin prices and broader adoption. This, in turn, incentivizes more miners to enter the network, increasing the demand for capital investment.

Overall, Bitdeer's $330 million convertible note offering is a strategic move that positions the company for significant growth. By raising capital through convertible notes, Bitdeer can pursue its expansion plans while maintaining financial flexibility. The funds will be used to enhance mining capabilities, advance ASIC technology, and optimize the company's balance sheet, all of which are essential for achieving long-term success in the competitive cryptocurrency mining industry.