Bitdeer Technologies Unveils $330 Million Convertible Notes Deal
Bitdeer Technologies Group's Offerings in Convertible Senior Notes
Bitdeer Technologies Group (NASDAQ: BTDR), a distinguished leader in Bitcoin mining technology, has successfully completed a significant financing round with the pricing of a US$330 million offering of Convertible Senior Notes. This strategic move not only highlights Bitdeer's robust financial capabilities but also reflects its commitment to advancing Bitcoin mining technologies.
Details of the Convertible Senior Notes
The newly issued notes will carry an interest rate of 4.875% and are general, senior unsecured obligations of the Company. In this arrangement, interest will be paid semiannually, with the first payment expected on January 1, 2026. The maturity date of these notes is set for July 1, 2031, allowing safe leeway for the Company’s financial planning.
The conversion rate is set at 62.9921 Class A ordinary shares per US$1,000 principal amount, translating into an approximate conversion price of US$15.88 per Class A ordinary share. This pricing reflects a 25% premium over its previous market performance, providing shareholders with an enticing opportunity for profit should they decide to convert their notes into shares.
Redemption and Repurchase Options
Bitdeers’ flexibility in its financial structure is further emphasized through the redemption rights attached to these notes. Starting from July 6, 2028, the Company can redeem a portion or all of the notes if certain conditions are met, specifically if the Class A ordinary shares trade at least 140% of the conversion price over a designated period. This strategic capability gives Bitdeer leverage in managing its debt.
Utilization of Proceeds from the Offering
The Company plans to utilize approximately US$319.6 million from this offering primarily for several key initiatives. Funding will be directed towards the expansion of datacenters, the development and manufacture of ASIC-based mining rigs, as well as general operational expenses. This strategic allocation underlines Bitdeer’s commitment to enhancing its infrastructure to meet growing demand in the Bitcoin mining space.
Zero-Strike Call Option and Its Impact
In conjunction with the notes offering, Bitdeer has also entered a zero-strike call option transaction with an affiliate of one of its initial purchasers. This innovative financial maneuver allows Bitdeer to secure approximately 10.2 million Class A ordinary shares without further payment upon maturity of the option.
This arrangement could serve to stabilize or enhance the market positioning of the Class A ordinary shares while creating favorable trading conditions amid varying market conditions, effectively hedging against investments related to the notes.
Concurrent Note Exchange Transactions
Additionally, Bitdeer initiated a concurrent note exchange transaction involving its existing 8.50% convertible senior notes. This transaction involves a cash payment and a provision of Class A shares to facilitate the exchange, further diversifying the Company’s financing structure.
About Bitdeer Technologies Group
Bitdeer Technologies Group stands at the forefront of Bitcoin mining technology. The Company is expertly positioned to offer a wide array of comprehensive Bitcoin mining solutions. Bitdeer navigates complex mining processes, such as equipment procurement, logistics, datacenter design, and ongoing operations.
Furthermore, the firm is advancing into cloud capabilities, catering to significant demand for artificial intelligence, thereby broadening its market reach and influence in the tech industry.
Frequently Asked Questions
What is the primary purpose of the US$330 million offering?
The proceeds will primarily support datacenter expansion, ASIC mining rig development, and general operational costs.
What are the interest rates on the Convertible Senior Notes?
The notes carry an interest rate of 4.875%, paid semiannually.
When do the Convertible Senior Notes mature?
The notes will mature on July 1, 2031.
What is the conversion price for the notes?
The initial conversion price is approximately US$15.88 per Class A ordinary share.
How will the zero-strike call option benefit Bitdeer?
This option allows Bitdeer to secure additional shares, potentially enhancing liquidity and stabilizing market conditions.
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