Bitdeer Secures $330 Million in Convertible Bond Issuance for Expansion

According to Foresight News, Bitdeer has successfully completed a $330 million convertible bond issuance with a coupon rate of 4.875%, set to mature in 2031. This marks the third convertible bond financing by Bitdeer within the past year. The funds raised will be allocated towards the development of SEALMINER mining machines and the expansion of data centers. The private placement was directed at qualified institutional investors, exceeding the initial target of $300 million and including an additional $45 million in overallotment rights. As per the announcement on Wednesday, $129.6 million of the funds will be used for zero-strike price call option hedging, while $36.1 million in cash will replace previously issued high-interest convertible bonds with an 8.5% rate. As part of a debt restructuring strategy, Bitdeer has repurchased $75.7 million of convertible bonds issued in August 2024, which had set a record for the highest interest rate among listed mining companies. The replacement was completed through cash payments and the issuance of 8.1 million shares, with an implied stock price of approximately $5—representing a 57% discount compared to the current market price of $11.80. This move allows bondholders to exit profitably while significantly reducing the company's interest burden. Following these developments, Bitdeer's stock price opened 13% lower on Wednesday.