Shares of Bitdeer Technologies Group (NASDAQ: BTDR) tumbled 5.49% in pre-market trading on Friday, following the company's announcement of a significant fundraising effort through convertible senior notes.
On November 13, Bitdeer revealed plans to raise $400 million through the issuance of convertible senior notes, with an option for initial purchasers to buy additional notes worth up to $60 million within 13 days. This could potentially bring the total fundraising to $460 million. The company stated that the funds would be allocated towards data center expansion, ASIC miner development, AI and HPC cloud business expansion, and general corporate purposes.
This move comes as Bitdeer, a major player in the cryptocurrency mining industry, navigates the evolving landscape of AI and high-performance computing. The company, founded by crypto legend Wu Jihan, holds nearly 3GW of global power resources and has been strategically positioning itself in both the cryptocurrency mining and AI data center markets. Unlike some competitors who have aggressively pivoted to AI, Bitdeer has maintained a balanced approach, retaining Bitcoin mining as its core business while prudently upgrading some mining facilities into AI data centers.
The pre-market stock decline may reflect investor concerns about the dilutive effects of the convertible notes or uncertainty about the company's strategic direction in balancing its traditional mining operations with its expansion into AI infrastructure. As the AI industry faces increasing demand for power resources, Bitdeer's significant electricity holdings could prove to be a valuable asset, but the transition also carries risks and substantial capital requirements.
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