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Bitdeer launches $150 million convertible notes with 8.5% yield

Bitdeer launches $150 million convertible notes with 8.5% yield

GrafaGrafa2024/08/19 06:45
By:Mahathir Bayena

Bitdeer Technologies Group, a prominent player in the Bitcoin (CRYPTO:BTC) mining industry, has unveiled a $150 million convertible notes offering with an attractive annual interest rate of 8.5%. 

The offering, which is set to close on August 20, 2024, reflects Bitdeer’s strategic efforts to expand its operations and capitalise on the growing demand for cryptocurrency mining infrastructure. 

This move comes amidst a broader trend in the bitcoin mining sector, where companies have collectively raised $2.1 billion through stock offerings since the second quarter of 2024.

The convertible notes, maturing in 2029, are designed to be converted into Bitdeer’s Class A ordinary shares at an initial rate of 117.0207 shares per $1,000 principal amount. 

This conversion rate translates to a price of approximately $8.55 per share, representing a 35% premium over the last recorded sale price of $6.33 on August 15, 2024. 

This premium underscores Bitdeer’s confidence in its long-term growth prospects and the value it anticipates creating for investors.

Bitdeer plans to allocate approximately $144.5 million of the net proceeds from this offering to key growth initiatives, including the expansion of its data centers and the development of application-specific integrated circuit (ASIC)-based mining rigs. 

These efforts are aimed at enhancing Bitdeer’s mining capabilities and maintaining its competitive edge in the increasingly crowded cryptocurrency mining market

The remaining funds will be used for other corporate purposes, supporting Bitdeer’s broader strategic goals.

The 8.5% yield offered by Bitdeer is particularly noteworthy, as it is higher than what has been typically seen in similar offerings within the bitcoin mining industry. 

This could make the offering more attractive to investors, especially those seeking higher returns in a volatile market. 

Following the announcement, Bitdeer’s shares (BTDR) saw a slight uptick of 2.05%, although they remain down by 15.7% over the past five days.

The offering is being managed by BTIG, with A.G.P./Alliance Global Partners, The Benchmark Company, Needham Company, and Roth Capital Partners serving as co-managers. 

This financing initiative underscores Bitdeer’s commitment to scaling its operations and solidifying its position as a leader in the bitcoin mining industry. 

The funds raised will be crucial in enabling Bitdeer to pursue its expansion plans, particularly in the development of cutting-edge mining technology and infrastructure, which are essential for sustaining long-term growth in the competitive crypto mining landscape.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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