Bitdeer Raises $330 Million in Private Placement for Expansion

Bitdeer Technologies, a prominent Bitcoin miner and ASIC manufacturer, has successfully completed a $330 million private placement of convertible senior notes. These notes are set to mature on July 1, 2031, and carry an interest rate of 4.875%. The conversion price for these notes is $15.87 per share, which is approximately 44% higher than Bitdeer's current trading price of $11 per share.

The conversion rate for the bond is 62.9921 Class A shares per $1,000 principal. This means that if the notes are fully converted, it could result in roughly 20.8 million new shares. To manage this potential dilution, Bitdeer has prepaid Barclays $129.6 million for a call option with a zero strike price on over 10.2 million shares. This option, which covers 49% of the conversion total, allows Bitdeer to settle conversions using shares from Barclays’ inventory rather than its own stock.

Bitdeer plans to allocate the proceeds from this private placement strategically. Approximately $129.6 million will be used to fund the zero-strike call option, $36.1 million will go towards paying the cash consideration for concurrent note exchange transactions, and the remaining funds will be directed towards datacenter expansion, the development of its ASIC manufacturing capabilities, and working capital.

The company is actively engaged in research and development efforts that could potentially make its mining rigs substantially more efficient than current models. This investment in innovation is part of Bitdeer's broader strategy to maintain its competitive edge in the rapidly evolving cryptocurrency mining industry.