Bitdeer Raises $330 Million Through Convertible Bond Sale
Bitcoin mining and ASIC manufacturing company Bitdeer Technologies (BTDR) has completed a private placement of $330 million in convertible senior notes due July 1, 2031. The notes bear interest at 4.875% and have a conversion price of $15.87 per share, which is approximately 44% above BTDR's current market value of $11.
The bonds’ conversion ratio of 62.9921 Class A shares per $1,000 of principal means that a full conversion could result in the issuance of approximately 20.8 million new shares. To achieve this, Bitdeer paid Barclays $129.6 million in advance for a zero-strike call option on over 10.2 million shares, representing 49% of the total conversion. This option allows Bitdeer to settle the conversions using shares from Barclays’ reserves rather than affecting its own shares.
Bitdeer will use approximately $129.6 million of the proceeds to fund the zero-strike call option, $36.1 million to pay cash consideration for the concurrent note swap transactions, and the remaining funds will be used for data center expansion, ASIC manufacturing development, and working capital.
The company is currently developing new ASIC chip designs that could significantly improve the efficiency of its mining rigs compared to current models.
Shares were marginally lower in trading on Wednesday.
Source: cryptonews.net
