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SINGAPORE - Bitcoin mining technology company Bitdeer Technologies Group (NASDAQ:BTDR), currently valued at $2.67 billion in market capitalization, announced Tuesday its intention to offer $300 million in Convertible Senior Notes due 2031 through a private placement to qualified institutional buyers. According to InvestingPro analysis, the company is currently trading above its Fair Value, with analysts anticipating sales growth but continued unprofitability this year.
The company plans to grant initial purchasers an option to buy up to an additional $45 million in notes within a 13-day period after issuance. The notes will be senior unsecured obligations with semiannual interest payments, according to the press release statement. InvestingPro data reveals that Bitdeer operates with a moderate debt level, with a debt-to-equity ratio of 0.38, while experiencing significant cash burn in recent quarters.
Upon conversion, Bitdeer may deliver cash, Class A ordinary shares, or a combination of both. The interest rate, initial conversion rate, and other terms will be determined at pricing.
The company intends to use proceeds for datacenter expansion, ASIC-based mining rig development and manufacturing, and working capital. A portion will fund a zero-strike call option transaction with an initial purchaser and cash consideration for concurrent note exchanges. With revenue of $300.4 million in the last twelve months and a concerning gross profit margin of just 9.67%, this capital raise comes at a crucial time. Get deeper insights into Bitdeer’s financial health and 12 additional exclusive ProTips with InvestingPro.
Alongside the offering, Bitdeer plans to enter into privately negotiated exchanges with holders of its existing 8.50% convertible senior notes due 2029. The company also intends to execute a zero-strike call option transaction with an initial purchaser, giving Bitdeer the right to receive a specified number of Class A ordinary shares at expiry.
The notes and any Class A ordinary shares issuable upon conversion have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
Bitdeer, headquartered in Singapore with datacenters in the United States, Norway, and Bhutan, provides Bitcoin mining solutions including equipment procurement, logistics, datacenter operations, and cloud capabilities for artificial intelligence customers. The company’s stock has shown significant volatility, with a beta of 2.32 and a 36% decline over the past six months, though it maintains a current ratio of 1.37, indicating adequate short-term liquidity.
In other recent news, Bitdeer Technologies Group reported first-quarter 2025 earnings that did not meet analyst expectations. The company posted revenue of $70.1 million, falling short of the $71.7 million consensus estimate, and recorded an adjusted loss per share of $0.37, compared to the projected $0.32 per share loss. Despite this, Bitdeer achieved a net income of $409.5 million, attributed mainly to non-cash fair value changes of derivative liabilities. The company also announced an increase in its self-mining hashrate to 13.6 EH/s in May 2025, with plans to expand to over 40 EH/s by October 2025. Bitdeer issued 5,186,627 ordinary shares in May, raising $50 million in cash proceeds from Tether. Additionally, B.Riley raised Bitdeer’s stock target to $18, maintaining a Buy rating, citing the company’s expansion into the ASIC market and self-mining operations. Bitdeer has been under scrutiny after a report from Callisto Research questioned its financial transparency and governance, leading to a negative market reaction. The company has yet to respond to the allegations in the report.
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