Bitdeer (BTDR) Tumbles 8%: $330M Convertible Notes Spark Selloff—Buying Opportunity or Warning Sign?

Bitdeer Technologies Group just hit a speed bump—and traders aren't waiting around to ask questions.

The crypto mining stock cratered 8% after announcing a $330 million convertible notes offering, triggering instant flashbacks to 2022's dilution disasters. Market's voting with its feet, but is this panic overblown?

Convertibles: Smart capital or desperation play?

That $330 million raise smells like strategic hedging—convertibles let companies kick the dilution can down the road. But with Bitcoin hovering below its glory-day highs, investors clearly fear another over-leveraged crypto outfit scrambling for runway.

Wall Street's short memory

Funny how quickly markets forget: this is the same playbook Tesla used during its growth spurt. Difference is, Elon had meme magic. Bitdeer's got... efficient mining rigs?

The cynical take: When crypto firms start printing convertible debt, smart money checks the exits. But for believers? This dip might just be the discount they've been waiting for.

TLDR

• Bitdeer Stock Drops 8% After $330M Convertible Note Offering
• BTDR Falls on Convertible Debt Deal With 25% Share Premium
• $330M Capital Raise Targets AI, Mining Expansion at Bitdeer
• Convertible Notes Trigger Price Swings in Bitdeer Shares
• Bitdeer Bets Big on AI and Mining With Bold Financing Move

Bitdeer Technologies Group shares dropped 8.43% to $11.63 during early trading on June 18, 2025. The decline followed the announcement of a $330 million convertible senior notes offering. Although the stock attempted recovery, it remained below the $11.75 mark throughout the session.

Bitdeer Technologies Group (BTDR)

Convertible Notes Target Institutional Buyers With 25% Conversion Premium

Bitdeer Technologies Group launched its latest capital raise through a private placement of convertible notes. The offering is directed at institutional buyers under Rule 144A of the Securities Act. It includes an option for underwriters to purchase an additional $45 million in notes within 13 days.

The notes carry a 4.875% interest rate and will mature in July 2031. Bitdeer set the conversion price at approximately $15.88, reflecting a 25% premium over the previous close. This gives buyers the flexibility to convert debt into Class A ordinary shares.

The company may redeem the notes early after July 6, 2028, subject to market and liquidity conditions. It has also outlined several repurchase triggers, including fundamental changes or early redemption events. These features provide added flexibility in future balance sheet management.

Net Proceeds to Fund Zero-Strike Options and Expansion Plans

Bitdeer expects net proceeds of about $319.6 million from this offering, after deducting fees and expenses. It plans to allocate $129.6 million to fund a zero-strike call option transaction with an affiliate of the underwriter. This instrument gives Bitdeer rights to acquire 10.2 million shares without further payment.

An additional $36.1 million will cover obligations from concurrent note exchange transactions. The company will repurchase $75.7 million in 8.50% convertible notes due 2029, offering a mix of cash and 8.1 million shares. These actions aim to optimize the capital structure and reduce existing debt.

The remaining funds will support datacenter expansion and ASIC mining rig development. Bitdeer also plans to enhance its AI infrastructure and general operations. This reinvestment aligns with its long-term growth strategy across multiple regions.

Market Reaction Tied to Derivatives and Share Activity

The share decline coincided with potential hedging activity linked to the convertible note deal. The option counterparty may buy or sell Bitdeer shares or adjust derivative positions, impacting short-term price movement. Such trading could offset or amplify the effects of the capital raise.

Additionally, participants in the note exchange may unwind hedges tied to previously held securities. Given their size relative to daily trading averages, these transactions could generate significant volume. Bitdeer acknowledged this risk but emphasized the long-term value of the financing strategy.

Bitdeer maintains a market cap above $2.3 billion. It continues to expand operations globally, including in Texas, Norway, and Bhutan. The company has also deployed new SEALMINER rigs and launched an AI cloud platform supported by LLMs.

Bitdeer previously raised capital through Tether and a debt facility with Matrix Finance. Both firms are linked through leadership under Jihan Wu, who co-founded Bitmain. These strategic moves indicate Bitdeer’s commitment to strengthening its presence in Bitcoin mining and AI computing.