Bitdeer Technologies Launches $150M Convertible Notes Offering with Attractive 8.5% Yield

Bitdeer Technologies Group has announced a significant $150 million convertible notes offering, boasting an annual interest rate of 8.5%. This strategic move is expected to conclude on August 20, 2024, and is part of a growing trend in the bitcoin mining sector, where firms have collectively raised $2.1 billion through stock offerings since the second quarter of this year.

Details of the Offering

The convertible notes will mature in 2029 and can be converted into Bitdeer's Class A ordinary shares at an initial rate of 117.0207 shares per $1,000 principal amount. This conversion price is approximately $8.55 per share, representing a 35% premium over its last recorded sale price of $6.33 on August 15, 2024.

Bitdeer plans to allocate about $144.5 million of the net proceeds from this offering to enhance data centers, develop ASIC-based mining rigs, and support other corporate activities. This announcement follows a wave of fundraising by bitcoin miners, which includes notable players like MARA, Hive, Core, Terawulf, Cleanspark, Riot, Bitfarms, and Cipher.

Market Reaction

The 8.5% yield offered by Bitdeer stands out in comparison to other mining firms, potentially attracting investors more quickly. Following the announcement, Bitdeer’s shares (BTDR) saw a slight increase of 2.05%, though they have experienced a 15.7% decline over the preceding five days. The offering is being managed by BTIG, with several co-managers including A.G.P./Alliance Global Partners, The Benchmark Company, Needham & Company, and Roth Capital Partners.

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