Bitdeer Raises $330 Million for US Expansion Amid 41% Revenue Drop

Bitdeer Technologies Group, a leading Bitcoin mining company based in Singapore, has declared its intention to raise $330 million through the issuance of senior convertible notes. This capital raise is intended to support the company's strategic expansion plans, which include the development of data centers and the advancement of ASIC-based mining rigs. The convertible notes, set to mature in 2031, offer the company flexible financing options. Out of the total amount, $130 million will be allocated to a zero-strike call option transaction, while $36 million will be used to settle concurrent note exchange transactions. The remaining funds will be directed towards enhancing the company’s operational capabilities.

This latest fundraising effort follows a similar debt raise of $150 million in August 2024, highlighting Bitdeer’s continuous efforts to secure capital for growth and diversification. Convertible notes are a strategic form of debt financing that can later be converted into equity, providing companies with the flexibility to manage their financial obligations while pursuing expansion opportunities. As senior convertible notes, these instruments hold priority over other types of debt issued by the company, ensuring a higher level of security for investors.

The company’s decision to raise funds comes at a time when it is facing declining revenue and seeking to expand its operations in the United States. This strategic move is intended to hedge against potential trade tensions and diversify its operational footprint. 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 these challenges, the company reported a net income of over $400 million, partially attributed to gains on warrants and convertible notes issued to Tether.

The fundraising activity in the Bitcoin mining industry has been robust, with several companies raising capital through various means. This trend suggests increased competition within the sector, driven by a rising hashrate and growing institutional adoption of digital assets. The hashrate, which measures the total computational power used to secure the Bitcoin network, tends to increase over time due to rising Bitcoin prices and broader adoption. This, in turn, incentivizes more miners to enter the network, creating a demand for capital investment to enhance computational efficiency.

Bitdeer’s strategic initiatives, including the expansion of data centers and the development of advanced mining rigs, are aimed at positioning the company for long-term growth and competitiveness in the rapidly evolving Bitcoin mining landscape. By securing $330 million through convertible notes, Bitdeer is poised to strengthen its financial position and pursue opportunities for expansion and innovation.