"The company said the offering, aimed at institutional buyers, includes an option for initial purchasers to buy an additional $45 million in notes, which would bring the total raise to $345 million if exercised. The notes will be convertible into cash, Class A ordinary shares, or a combination of both at Bitdeer's discretion. Bitdeer's stock fell over 18% in pre-market trading, dropping below $8 for the first time since April."
"Convertible debt offerings often pressure equities because investors anticipate dilution if the stock price rises and noteholders convert their holdings into shares. Bitdeer said it plans to enter into capped call transactions with financial institutions to help offset dilution risk. Such hedging strategies are designed to limit the number of shares issued upon conversion, though they can introduce additional volatility around pricing."
"Alongside the note sale, Bitdeer disclosed a separate registered direct offering of Class A ordinary shares to certain holders of its existing 5.25% convertible senior notes due 2029. The company said the number of shares and the price will be determined at the time of pricing. Proceeds from the offerings will be used primarily to fund capped call transactions and to repurchase a portion of the 2029 notes in privately negotiated deals."
Bitdeer plans to raise $300 million through a private sale of convertible senior notes due 2032, with an option for initial purchasers to increase proceeds to $345 million. The notes are convertible into cash, Class A ordinary shares, or a combination at Bitdeer's discretion. Shares tumbled more than 18% pre-market and fell about 15% on the day amid investor concern over dilution from potential conversions. Bitdeer intends to enter capped call transactions to help offset dilution and is offering Class A shares to holders of its 2029 notes. Proceeds will fund hedges, repurchases of 2029 notes, and support data center and AI cloud expansion.
Read at Bitcoin Magazine
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