Bitdeer shares slid sharply Thursday after the bitcoin miner unveiled plans to raise up to $300 million through a private sale of convertible senior notes — a move that stoked investor fears of future dilution. What the company announced - Bitdeer Technologies (BTDR) filed to sell $300 million of convertible senior notes due 2032 (with an underwriter greenshoe option for an additional $45 million). The notes can be settled in cash, shares, or a combination at Bitdeer’s election. - Separately, Bitdeer plans a registered direct offering of Class A shares to certain holders of its 5.25% convertible notes due 2029. - Proceeds will first be used to fund capped call transactions intended to limit share dilution if the new notes convert, and to privately repurchase a portion of the 2029 notes. Any remaining cash will go toward expanding data centers, growing its high-performance computing and AI cloud businesses, and developing ASIC-based mining rigs. - The registered direct offering is conditional on completion of the notes sale and the related repurchases; the notes offering, however, may proceed on its own. Why investors reacted Convertible debt is common in growth-oriented miners but often weighs on stock prices because it introduces the prospect of future dilution: if Bitdeer’s share price rises, noteholders could convert debt into equity, expanding the float. Bitdeer’s plan to buy capped calls is designed to blunt that dilution, but such hedges can themselves create pricing volatility around the stock. Market impact BTDR shares plunged about 17% in early trading, slipping below $8 for the first time since April as the market priced in conversion risk and near-term uncertainty. Bottom line Bitdeer is raising capital to pursue growth in mining infrastructure and AI/cloud computing while attempting to manage dilution risk through capped calls and targeted buybacks. Investors will be watching how the notes sale, hedging strategy and any repurchases play out — and how the market prices the potential dilution in the weeks ahead. Read more AI-generated news on: undefined/news

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