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Bitdeer Announces $300M Convertible Senior Note Offering
•February 19, 2026
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Why It Matters
The financing underscores the capital intensity of crypto‑mining and AI infrastructure, while the stock plunge highlights investor wariness over dilution and debt risk.
Key Takeaways
- •Bitdeer issues $300M convertible senior notes.
- •Shares drop 17% after announcement.
- •Notes convertible until 2032, may dilute equity.
- •Proceeds target data centers, AI cloud, mining rigs.
- •Capped call transactions employed to offset dilution.
Pulse Analysis
Convertible senior notes have become a favored bridge between equity and traditional debt for capital‑hungry crypto‑mining firms. By offering investors the right to swap debt for shares, companies like Bitdeer can secure lower‑cost financing while preserving cash for growth initiatives. However, the conversion feature introduces potential share‑count expansion, which can depress stock valuations, especially in a market where mining profitability is tied to volatile Bitcoin prices and tightening monetary conditions.
Bitdeer’s latest $300 million note, supplemented by a $45 million private placement, adds to a $150 million offering earlier this year that already pressured the stock. The notes mature in 2032 and carry semi‑annual interest, but their convertible nature means that any upside in the share price could trigger substantial dilution. To mitigate this, Bitdeer is deploying capped‑call transactions—a derivative strategy that caps the conversion price and offsets some dilution risk. Despite these safeguards, the market reacted sharply, pushing the share price to its lowest level since April and extending a 70% decline from its January 2025 peak.
The broader implication for the crypto‑mining sector is a clear signal that investors demand transparent capital‑raising tactics and tangible use‑of‑proceeds narratives. Bitdeer plans to channel funds into data‑center expansion, AI cloud capabilities, and next‑generation mining rigs, aligning with the industry’s shift toward integrated AI services. Stakeholders will watch how effectively the company translates this financing into operational efficiency, as future earnings will determine whether the convertible debt becomes a strategic lever or a lingering dilution burden.
Deal Summary
Bitdeer Technologies Group announced a $300 million convertible senior note offering, with an option for an additional $45 million private placement. The proceeds will be used for data‑center expansion, AI cloud growth, crypto mining rig development, and general corporate purposes.
Article
Source: Cointelegraph
Bitdeer stock tanks 17% on latest offering
Shares in Bitdeer Technologies Group took a hit on Thursday after the Bitcoin mining and artificial intelligence infrastructure firm announced a $300 million convertible senior note offering.
Bitdeer said that it intends to offer a “principal amount” of $300 million in convertible senior notes with an option for purchasers to buy an additional $45 million in a private placement.
It is the second convertible note offering from the firm, following a $150 million offering in April 2024 that also triggered an 18 % stock slump.
Convertible senior notes are loans that investors can convert into shares of the issuing company’s common stock, and holders of these notes have priority over other debt holders in the event of the company’s bankruptcy.
The new notes, due to settle in 2032, are senior unsecured obligations with semiannual interest payments and can be converted into cash, shares, or a combination of both.
Bitdeer intends to use the proceeds for data‑center expansion, AI cloud growth, development of crypto mining rigs, and general corporate purposes.
The company is headquartered in Singapore, with data centers in the US, Norway and Bhutan.
Bitdeer stock tanks 17 % on latest offering
Shares in Bitdeer (BTDR) ended trading on Thursday down 17.38 % to $7.94 and fell slightly in after‑hours trading to $7.89.
Company stock is currently down 29 % since the beginning of the year and almost 70 % since its January 2025 all‑time high of around $26.
Bitdeer fell by 17 % on Thursday to its lowest level since April. Source: Google Finance
Convertible debt often puts pressure on shares as investors factor in the risk of future dilution: if the stock rises, noteholders may convert their debt into equity, increasing the share count.
Capped call transactions to offset dilution
Bitdeer is also running a concurrent registered direct share offering tied to a plan to repurchase a portion of its existing convertible notes due in 2029.
Bitdeer plans to use “capped call transactions,” derivatives used when issuing convertible notes to offset dilution, but that did not prevent its stock from sliding.
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