A $150 million public offering of convertible notes is being proposed by Bitdeer Technologies Group, a Singapore-based cryptocurrency mining company.
The organization intends to allocate the funds toward the development of new ASIC mining machines and the expansion of its data centers.
Except for conversion, redemption, or repurchase, the senior and unsecured notes will mature on August 15, 2029. Holders of these convertible notes will receive an annual interest rate of 8.5% and the ability to convert them into equity.
Bitdeer will issue holders either Class A ordinary shares or a combination of cash and Class A shares upon conversion. We will allocate the funds from this offering to the expansion of data centers, the advancement of ASIC-based mining technology, and the fulfillment of other corporate requirements.
The announcement resulted in a stock decline of more than 18% for Bitdeer, which is currently the 11th largest crypto mining firm globally with a market capitalization of approximately $870 million.
The decline was more pronounced over a five-day period, with a 23% decrease from $8.26 on August 9 to $6.33. After the announcement of a $400 million convertible notes offering on August 14, Core Scientific experienced a 10% stock decline, which is consistent with this trend.
