Shares in Bitcoin miner and AI infrastructure firm Bitdeer Technologies Group fell 17% on Thursday, following the announcement of a $300 million convertible senior note offering. This private placement includes an option for purchasers to acquire an additional $45 million. This marks the second such offering from Bitdeer this year; a previous $150 million issuance in April also resulted in a stock decline.
Convertible senior notes allow investors to convert debt into the company's common stock. The newly issued notes, due in 2032, are senior unsecured obligations intended to fund datacenter expansion, AI cloud growth, and crypto mining rig development. Bitdeer operates datacenters in the US, Norway, and Bhutan.
The stock closed at $7.94 on Thursday, marking a significant drop from its year-to-date performance. Convertible debt issuances can pressure stock prices due to the potential for future dilution as noteholders may convert debt into equity. Bitdeer is also undertaking capped call transactions, a derivative strategy designed to mitigate dilution from convertible note offerings.