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Bitdeer Unveils $300 Million Convertible Notes Plan as Stock Slides on Dilution Fears

Investor concern over dilution drove a sharp selloff, with capped-call hedges plus 2029 note buybacks central to the plan.

Overview

  • The private placement targets $300 million of convertible senior notes due 2032 that are exchangeable into cash, Class A shares, or a combination at the company’s election.
  • A registered direct sale of Class A shares is intended for certain holders of Bitdeer’s 5.25% convertible notes due 2029, paired with privately negotiated repurchases of part of those notes.
  • Proceeds are earmarked first for capped-call transactions to reduce potential dilution, with remaining funds for data center expansion, AI/HPC cloud growth, and ASIC mining rig development.
  • Initial purchasers received an option to buy an additional $45 million of notes, and the equity sale depends on completion of the note offering and related repurchases, while the notes can proceed independently.
  • Shares fell roughly 17% in early trading, breaking below $8, with the company stating the financings are proposed rather than completed.