Bitdeer to Raise $360M via Convertible Notes amid Bitcoin Rally

Bitcoin mining and hosting firm Bitdeer is set to close a new round of debt financing of up to $400 million through convertible notes, as the company aims to expand its data center operations and develop ASIC miner manufacturing capabilities.

On Friday, Bitdeer announced the pricing of its proposed issuance of 5.25% convertible notes, totaling $360 million and maturing in 2029. The company has granted the initial purchaser an option to increase the issuance by an additional $40 million within 13 days, with the transaction expected to close by November 26.

This move comes amid a surge in Bitcoin’s market value, which is approaching the $100,000 milestone, prompting several North American public mining companies to issue convertible notes to capitalize on the rally. In August, Bitdeer already raised $150 million via convertible notes due 2029 with an interest rate of 8.5%.

Bitdeer estimates net proceeds from the new offering at $348 million, or $387 million if the additional option is exercised. A portion of the proceeds will be allocated to hedging against potential shareholder dilution due to future note conversions.

The remaining funds will be used for data center expansion, ASIC miner development and manufacturing, and other corporate expenses.

Earlier this week, MARA, the largest publicly traded Bitcoin mining company, issued $1 billion in zero-interest convertible notes to finance additional Bitcoin purchases, following a strategy pioneered by MicroStrategy.