Bitdeer prices $330 million convertible notes offering at 4.875%

SINGAPORE - Bitcoin mining technology company Bitdeer Technologies Group (NASDAQ:BTDR), currently valued at $2.5 billion and showing signs of being overvalued according to InvestingPro Fair Value metrics, announced Wednesday it has priced a $330 million offering of 4.875% Convertible Senior Notes due 2031 in a private placement to qualified institutional buyers. The financing comes as the company faces significant cash burn rates, with negative EBITDA of $87.7 million in the last twelve months.

The offering, which was increased from the previously announced $300 million, is expected to close on June 23, 2025. Initial purchasers have a 13-day option to buy up to an additional $45 million in notes. The company’s stock has shown high volatility with a beta of 2.32, according to InvestingPro data, which offers 12 more exclusive tips about BTDR’s financial health and market performance.

The notes will mature on July 1, 2031, with interest payable semiannually beginning January 1, 2026. The initial conversion rate is 62.9921 Class A ordinary shares per $1,000 principal amount, equivalent to a conversion price of approximately $15.88 per share, representing a 25% premium over the June 17 closing price.

Bitdeer estimates net proceeds of approximately $319.6 million, or $363.3 million if the additional purchase option is exercised. With current revenue of $300.4 million and operating with moderate debt levels, the company plans to use approximately $129.6 million to pay for a zero-strike call option transaction, $36.1 million for concurrent note exchange transactions, and the remainder for datacenter expansion, mining rig development, and working capital. For detailed analysis of Bitdeer’s financial position and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

In connection with the offering, Bitdeer entered into a zero-strike call option transaction with an affiliate of one of the initial purchasers, paying a premium of approximately $129.6 million for the right to receive approximately 10.2 million Class A ordinary shares.

The company also arranged privately negotiated transactions with certain holders of its 8.50% convertible senior notes due 2029 to exchange approximately $75.7 million aggregate principal amount of those notes for approximately $36.1 million in cash and approximately 8.1 million Class A ordinary shares.

The notes and any Class A ordinary shares issuable upon conversion have not been registered under the Securities Act, according to the press release statement.

In other recent news, Bitdeer Technologies Group announced plans to offer $300 million in convertible senior notes due 2031. This offering is targeted at qualified institutional buyers, with an option for initial purchasers to buy an additional $45 million in notes. Proceeds from this initiative are intended to support datacenter expansion, ASIC-based mining rig development, and other corporate purposes. In May 2025, Bitdeer reported an increase in its self-mining hashrate to 13.6 EH/s and mined 196 Bitcoins, marking an 18.1% increase from the previous month. The company also shipped 1.6 EH/s of mining rigs to external customers and is on track to reach a self-mining capacity of over 40 EH/s by October 2025.

Bitdeer has faced scrutiny following a report by Callisto Research, which questioned the company’s financial transparency and governance. The report raised concerns about opaque cryptocurrency revenue handling and potential financial irregularities. Despite these challenges, B.Riley analyst Lucas Pipes has raised Bitdeer’s stock target to $18.00, maintaining a Buy rating. The analyst cited Bitdeer’s entry into the ASIC market and aggressive expansion in self-mining operations as positive factors. Bitdeer has not yet publicly responded to the allegations made in the Callisto Research report.

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