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Investing.com -- Bitdeer Technologies Group (NASDAQ:BTDR) shares dropped 7.1% in afterhours trading on Tuesday after the Bitcoin mining technology company announced plans to offer $300 million in convertible senior notes due 2031.
The offering, aimed at qualified institutional buyers under Rule 144A of the Securities Act, includes an option for initial purchasers to buy up to an additional $45 million in notes within 13 days of the initial issuance. The notes will be senior unsecured obligations with semiannual interest payments, with conversion terms to be determined at pricing.
Bitdeer intends to use part of the proceeds to fund a zero-strike call option transaction with one of the initial purchasers and to pay for concurrent note exchange transactions involving its existing 8.50% convertible senior notes due 2029. The remaining funds will support datacenter expansion, ASIC-based mining rig development, and general corporate purposes.
The company also plans to enter into privately negotiated transactions with holders of its 8.50% convertible senior notes due 2029, exchanging them for cash and Class A ordinary shares. These exchange transactions may lead to substantial trading activity in Bitdeer shares as hedged holders unwind their positions.
In connection with the offering, Bitdeer will enter a zero-strike call option transaction that gives it the right to receive a specified number of Class A ordinary shares. This arrangement is designed to facilitate derivative transactions between the option counterparty and certain note investors, potentially affecting the market price of both the company’s shares and the notes.
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