Bitdeer Technologies Group’s stock fell Thursday on the announcement of a $300 million convertible senior note issuance by the Bitcoin mining and AI infrastructure company.
According to Bitdeer, it plans to offer convertible senior notes worth $300 million, with the possibility for buyers to purchase an extra $45 million through a private placement.
It is the company’s second issuance of convertible notes, after a $150 million issue in April 2024 that also caused a stock decline of 18%.
In the case of the company’s bankruptcy, holders of convertible senior notes have priority over other debt holders and can convert their loans into shares of the issuing company’s common stock.
The new notes are senior unsecured obligations that have semi-annual interest payments and are slated to settle in 2032. They can be exchanged into shares, cash, or a mix of the two.
The money will be used for Bitdeer’s general business needs, data centre expansion, AI cloud development, and the construction of cryptocurrency mining machines.
With data centres in the US, Norway, and Bhutan, the company’s headquarters are in Singapore.
Bitdeer’s stock dropped 17.38% to $7.94 at the end of Thursday’s trading, and it dropped a little to $7.89 after hours.
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