Bitdeer Technologies Group (NASDAQ: BTDR) saw its shares plummet 13.56% in pre-market trading on Thursday, following the company's announcement of a significant capital raising initiative. The Singapore-based Bitcoin mining and AI cloud technology firm revealed plans for a registered direct offering of Class A ordinary shares and a private placement of $400 million in convertible senior notes due 2031.
The dual offering strategy, announced after market close on Wednesday, has sparked concerns among investors about potential shareholder dilution and increased debt levels. Bitdeer intends to use the proceeds from these offerings to repurchase a portion of its existing 5.25% convertible notes due 2029, fund datacenter expansion, support its AI cloud business, and for other corporate purposes. The company also plans to use a portion of the proceeds to pay for capped call transactions, aimed at offsetting potential dilution.
This latest development compounds Bitdeer's recent struggles in the market. The stock has been on a downward trajectory, shedding approximately 37% of its value over the past three trading sessions. Adding to the negative sentiment, B. Riley recently reduced its price target for Bitdeer from $32 to $29. The company's market capitalization, which stood at approximately $3 billion before the announcement, is expected to be significantly impacted by this move. As Bitdeer navigates these financial maneuvers, investors will be closely watching how the company utilizes the raised capital to drive growth and maintain its position in the competitive Bitcoin mining and AI cloud technology sectors.
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