Key Points:
Read more: BitDeer Acquires ASIC Designer Desiweminer In A Monumental $140M Deal
The Bitdeer convertible notes will mature on December 1, 2029, and provide an option for initial purchasers to buy up to an additional $40 million in principal notes within 13 days from the date of issuance. The transaction is expected to close on November 26, 2024.
The notes will constitute senior unsecured obligations, bearing interest at 5.25% per annum, payable semiannually on June 1 and December 1, beginning June 1, 2025. Upon conversion, Bitdeer may provide cash, Class A ordinary shares, or a combination of both at its discretion. The initial conversion rate is 62.7126 Class A shares per $1,000 of principal, equivalent to an initial conversion price of $15.95 per share-representing a 42.5% premium to the November 21 closing price on Nasdaq.
Bitdeer expects to realize net proceeds of $348.2 million after expenses, which could increase to $387 million if additional subscription rights are fully exercised. The net, after collecting proceeds from Bitdeer convertible notes, will be used to finance the data centre expansion, ASIC mining machine R&D, and daily operations.
In this regard, Bitdeer also announced an exchange agreement with holders of some of its 8.50% convertible bonds due in 2029.
The announcement comes as other cryptocurrency-focused companies continue leveraging convertible note offerings. Marathon Digital Holdings recently raised $1 billion through zero-coupon convertible notes, directing $801 million toward Bitcoin purchases and $199 million to debt repurchases.
Similarly, MicroStrategy completed a $3 billion offering of 0% convertible senior notes, using the $2.97 billion net proceeds to acquire additional Bitcoin and support general corporate operations.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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