In a move that reflects the ongoing evolution of the cryptocurrency landscape, Bitdeer Technologies Group, a leading Bitcoin miner and semiconductor design company, has secured $150 million through a convertible bond offering. This strategic financing comes as Bitcoin’s price experiences volatility, prompting blockchain companies to explore innovative ways to access capital. Bitdeer plans to utilize these funds to fuel its ambitious growth strategy, particularly in the areas of data center expansion and development of its next-generation mining rigs based on its cutting-edge SEALMINER ASIC technology.
The five-year convertible bond offering, priced at $150 million, is expected to generate substantial cash flow for Bitdeer’s operations. The bonds, which represent senior, unsecured obligations of Bitdeer, carry an 8.50% annual interest rate, paid twice a year to holders. With a maturity date of August 2029, investors have the option to convert the bonds into equity until close to the maturity date. This conversion feature becomes particularly attractive if Bitdeer’s stock price appreciates significantly.
The offering was designed with institutional investors in mind, but retail investors could potentially gain access through mutual funds or exchange-traded funds (ETFs). Bitdeer projects net proceeds of $144.5 million from the offering after accounting for discounts, commissions, and expenses. This figure could rise to $166.3 million if the underwriters exercise their over-allotment clause, which allows them to purchase additional notes if demand surpasses expectations.
Bitdeer’s aggressive growth strategy centers around its goal of becoming the first fully integrated Bitcoin miner in the industry. The company’s recent accomplishments include the mass production of its SEALMINER A1 chips for Bitcoin mining, contributing to a projected increase of 3.4 EH/s in its data center capacity by year-end. Further bolstering its technological advancements, Bitdeer is set to begin mass production of its second-generation SEAL02 chip wafers in September, while research and development for the third-generation SEAL03 chip are already underway. Alongside these technological milestones, Bitdeer’s data center projects in the U.S., Norway, and Bhutan remain on track, steadily expanding its Bitcoin mining electrical capacity.
The recent convertible bond offering marks another significant milestone in Bitdeer’s quest to solidify its position as a leading player in the Bitcoin mining space. This latest financial initiative, coupled with the company’s robust growth strategy and technological innovations, positions Bitdeer for continued success in the dynamic and evolving cryptocurrency market.
