SINGAPORE - Bitdeer Technologies Group (NASDAQ:BTDR), a technology firm specializing in blockchain and high-performance computing, announced today its intention to offer $150 million in convertible senior notes due 2029, with the possibility of an additional $22.5 million to cover over-allotments. The offering is subject to market and other conditions, and the notes will be senior, unsecured obligations of the company.
The notes will mature on August 15, 2029, and holders will have the option to convert their notes into cash, Class A ordinary shares, or a mix of both before the second scheduled trading day immediately preceding the maturity date. The interest rate and initial conversion rate will be determined at the time of the offering's pricing.
Bitdeer plans to use the net proceeds from the offering to expand data centers, develop ASIC-based mining rigs, and for working capital and other general corporate purposes. BTIG is the book-running manager for the offering, while A.G.P./Alliance Global Partners (NYSE:GLP) serves as the co-manager.
The offering is being made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission on April 2, 2024. The preliminary prospectus supplement and accompanying prospectus have been filed with the SEC and are available on their website.
This announcement does not constitute an offer to sell or a solicitation of an offer to purchase any securities, and the offering will be made only by means of the prospectus supplement and the accompanying prospectus.
Bitdeer, headquartered in Singapore, operates data centers in the United States, Norway, and Bhutan, and offers computing solutions including equipment procurement, datacenter construction, and management, as well as advanced cloud services for artificial intelligence applications.
The completion, timing, and size of the proposed offering are subject to market conditions and other factors, and there is no assurance that the offering will be completed as planned.
This article is based on a press release statement from Bitdeer Technologies Group.
In other recent news, Bitdeer Technologies Group has faced challenges with its second-quarter earnings report for 2024, showing a revenue of $99.2 million, falling short of the consensus estimate of $108.4 million. Despite the revenue shortfall, Bitdeer's management remains confident in their long-term strategy, emphasizing the expansion of self-mining operations and continuous technological innovation. Analyst firms have recently adjusted their price targets for Bitdeer, with Rosenblatt Securities initiating coverage with a Buy rating and a 12-month target of $9.00, H.C. Wainwright lowering its target to $17 from $20, B.Riley raising its target to $14.00, and Cantor Fitzgerald and Benchmark setting their targets at $15.00 and $16.00 respectively. Bitdeer has also announced plans for an additional 1.6 gigawatts of expansion and is scaling up its self-mining activities with the SEALMINER. These are recent developments that reflect Bitdeer's ongoing efforts to expand its operations and enhance its technological capabilities.
InvestingPro Insights
As Bitdeer Technologies Group (NASDAQ:BTDR) seeks to expand its operations through a significant convertible senior notes offering, investors are closely monitoring the company's financial health and market performance. Recent InvestingPro data shows a market capitalization of $1.06 billion, reflecting the size and scale of Bitdeer in the competitive blockchain and high-performance computing sector.
The company's revenue growth has been impressive, with a 31.48% increase over the last twelve months as of Q2 2024. This indicates that despite the challenges faced by technology firms in this space, Bitdeer has managed to expand its revenue streams substantially. However, the company is not currently profitable, with a negative operating income margin of -4.36% for the same period. This suggests that while Bitdeer is growing its top line, it is still working on translating that growth into bottom-line profitability.
InvestingPro Tips provide further context to the company's financial position. Bitdeer holds more cash than debt on its balance sheet, which could be a sign of financial stability and an ability to fund its strategic initiatives. On the other hand, analysts have expressed some caution, with three of them revising their earnings expectations downwards for the upcoming period. This could indicate potential headwinds or a recalibration of growth prospects for Bitdeer.
For those interested in a deeper dive into Bitdeer's financials and market performance, InvestingPro offers additional tips. Currently, there are 13 more InvestingPro Tips listed, which can provide investors with a comprehensive understanding of the company's outlook and help them make more informed decisions. These insights can be accessed at https://www.investing.com/pro/BTDR.
Investors considering participating in the convertible notes offering or looking to invest in Bitdeer's stock should weigh these factors as they assess the potential risks and opportunities associated with the company.
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