Curated News
By: NewsRamp Editorial Staff
September 17, 2024
Bitdeer Announces Pricing of $150 Million Convertible Notes Offering
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- Bitdeer Technologies Group raises $150 million in convertible bond offering, providing potential for substantial returns through conversion into equity.
- Convertible notes will accrue 8.50% interest annually, with a maturity date of August 2029, and can be converted at a 35% premium to Bitdeer stock's price.
- Bitdeer plans to use the proceeds from the offering for data center expansion, mining rig development, and to become the industry's first fully integrated Bitcoin miner.
- Bitdeer's recent developments include mass production of SEALMINER A1 chips, delivery of second-generation SEAL02 chips, ongoing third-generation SEAL03 chip R&D, and growth in Bitcoin mining electrical capacity.
Impact - Why it Matters
This news matters because it sheds light on how blockchain companies are accessing capital in response to the volatile Bitcoin price. Bitdeer Technologies Group is utilizing a $150 million convertible bond offering to support its expanding development pipeline, which includes data center expansion and mining rig development. The offering provides insight into the company's ambitious growth strategy and its plans to become the industry's first fully integrated Bitcoin miner.
Summary
The Bitcoin price has stayed true to its inherently volatile nature of late, straying from its all-time high of $74,000 reached in March. In response, blockchain companies are getting more creative about accessing capital. Bitdeer Technologies Group (NASDAQ: BTDR), a Bitcoin miner and semiconductor design company, has responded by turning to capital markets to support its expanding development pipeline, most recently unveiling the pricing details of a $150 million, five-year convertible bond offering as a means to generate cash flow for its activities.
The notes sale was projected to be completed by Aug. 20. Bitdeer also extended the underwriters of the deal a 30-day option to scoop up additional notes in the aggregate principal amount of $22.5 million to offset the potential of over-allotments if demand was greater than anticipated. Bitdeer shares gained following the announcement.
Source Statement
This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Bitdeer Announces Pricing of $150 Million Convertible Notes Offering
