Bitdeer Shares Plummet Amid Convertible Bond Concerns

On February 19, Bitdeer (BTDR) experienced a significant drop in its stock price, falling by 19.5%, with its market capitalization now reported at $1.922 billion and the stock price at $8.36 billion. According to BlockBeats, market analysts attribute this decline to concerns over equity dilution following the company's announcement of a $300 million convertible bond issuance. Bitdeer revealed plans to issue $300 million in convertible senior notes due in 2032 through a private placement. Additionally, the company intends to grant initial purchasers an option to buy up to an additional $45 million. The proceeds from this issuance will be partially used to cover the costs of capped call transactions and to repurchase some of the 5.25% convertible bonds due in 2029. The remaining funds are earmarked for expanding data centers, enhancing high-performance computing and AI cloud services, developing and manufacturing ASIC mining machines, and for general corporate purposes.