Singapore-based crypto mining firm Bitdeer Technologies Group announced a proposed public offering of $150 million convertible notes due in 2029 to expand its data center and develop ASIC-based mining rigs.
On Aug. 15, Bitdeer said that the notes would be senior, unsecured obligations of the company, which will mature on Aug. 15, 2029, unless converted, redeemed or repurchased earlier.
A senior convertible note is a type of debt security that can later be converted into equity. It’s a form of debt for the company that can also accrue interest payments for the investor over time. A senior convertible note has priority over all other debt securities issued by a company.
Bitdeer said holders may convert their notes on the second scheduled trading day immediately after maturity.
Bitdeer offers Class A ordinary shares on maturity
When the notes are converted, Bitdeer will pay holders with Class A ordinary shares or a combination of cash and Class A ordinary shares. On Aug. 16, the crypto mining company announced that the notes would accrue an 8.5% interest rate annually.
Bitdeer said it would use the funds raised from the offering to expand and develop its business further. “The company intends to use the net proceeds from the offering for data center expansion, ASIC-based mining rig development as well as working capital and other general corporate purposes,” Bitdeer wrote.
List of mining companies by market capitalization. Source: CompaniesMarketCap
Bitdeer Technologies is the world’s 11th-largest Bitcoin (BTC) mining company based on market capitalization. Valued at about $870 million, the company trades above competitors like BitFufu and Bit Digital, according to CompaniesMarketCap data.
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Bitdeer stock drops 18% following the announcement
After it announced the convertible notes sale, Google Finance data shows that Bitdeer’s stock price dropped by over 18%. On the five-day chart, the stock shows a larger price dump of 23%, going from $8.26 on Aug. 9 to $6.33 at the time of writing.
5-day chart for Bitdeer Technologies Group. Source: Google Finance
Bitdeer is not the only mining firm to suffer blows to its stock prices after announcing a convertible notes offering. On Aug. 14, Bitcoin mining firm Core Scientific saw a 10% drop in stock prices after announcing a $400 million senior convertible notes offering.
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