Simply put
- Bitdeer, a mining company based in Singapore, is aiming to raise $330 million by issuing convertible notes.
- Interestingly, unlike many other cryptocurrency firms, they aren’t planning to use these funds to acquire more Bitcoin.
- On Wednesday, Bitdeer’s stock dropped further, marking a 23% decline for the month.
Bitdeer, a Bitcoin miner, has announced plans to raise $330 million through convertible notes. The company mentioned that its stock price is expected to decrease, contributing to its ongoing losses.
The offering increased the total private placement amount by $30 million, which was first disclosed on Tuesday. Additionally, initial buyers will have options for notes worth up to $45 million.
The 4.875% convertible note is set to mature in 2031, with the sale anticipated to wrap up by June 23, according to a company statement.
Many crypto-adjacent companies often use convertible notes to accumulate Bitcoin, a trend popularized by companies like MicroStrategy.
However, as outlined in Bitdeer’s revenue plans, they will not use the raised funds to boost their crypto asset portfolio.
Instead, Bitdeer will allocate around $129.6 million to settle a zero strike call option and will use approximately $36.1 million for cash considerations. The remaining funds will go towards “data center expansion, ASIC-based mining rig development and manufacturing, working capital, and other general corporate expenses.”
When asked whether these general corporate purposes might include purchasing Bitcoin, representatives from the company didn’t respond.
While Bitdeer isn’t known for aggressively buying Bitcoin like its competitors, Mara and Riot Platforms, they currently hold 1,351 Bitcoin, which is valued at about $140 million based on current prices.
This represents more than a 100% increase from their holdings in December and has risen by over 300 Bitcoin since March.
The company recently reported an 18% increase in mined Bitcoin from April to May, but this boost didn’t do much to help BTDR shares, which fell 12% last week and 23% in the last month.
These declines extend the losses seen in the company’s shares this year, marking a particularly challenging period for publicly-traded Bitcoin miners.
