Bitdeer Technologies Group's stock experienced a sharp decline of 18.63% during pre-market trading on Thursday. The significant drop came amid announcements from the company regarding new capital raising initiatives.
The cryptocurrency mining firm revealed plans for a private placement of $300 million in convertible senior notes due 2032, with an option for purchasers to buy an additional $45 million. Simultaneously, Bitdeer announced a proposed registered direct offering of its Class A ordinary shares, with one filing indicating an offering of up to $700 million.
Market analysts attribute the negative price reaction to investor concerns over potential share dilution from these offerings. The company stated it intends to use the proceeds to fund datacenter expansion, high-performance computing and AI cloud business development, ASIC-based mining rig advancement, and general corporate purposes.