Shares of Bitdeer Technologies Group (NASDAQ: BTDR) plummeted 16.14% in after-hours trading on Wednesday, following the company's announcement of a proposed registered direct offering of Class A ordinary shares and a private placement of $400 million in convertible senior notes. This sharp decline exacerbated the stock's recent downward trend, with shares having shed approximately 37% over the past three sessions.
The Singapore-based Bitcoin mining and AI cloud technology company revealed plans to offer Class A ordinary shares to certain holders of its existing 5.25% convertible senior notes due 2029. Simultaneously, Bitdeer announced a private placement of $400 million in convertible senior notes due 2031. The company intends to use the net proceeds from these offerings to repurchase a portion of its existing convertible notes, fund datacenter expansion, support its AI cloud business, and for other corporate purposes.
Investors reacted negatively to the news, likely due to concerns about potential dilution of existing shareholders and increased debt levels. The dual capital raise strategy, coming on the heels of a challenging week for Bitdeer, appears to have spooked the market. Adding to the negative sentiment, B. Riley had earlier reduced its price target for Bitdeer from $32 to $29. The significant after-hours drop also follows a fire incident reported at the company's under-construction facility in Massillon, Ohio, which had already contributed to the stock's 7.2% decline during regular trading hours.
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