Bitdeer Issues $150M Bonds Amid Falling Mining Profits

Bitdeer, a Singapore-based Bitcoin mining and colocation provider, has announced a $150 million public offering of convertible senior notes due in 2029. This move makes Bitdeer the third Bitcoin mining firm this week to issue convertible bonds, reflecting the industry’s ongoing struggle with profitability following the recent Bitcoin halving. The notes will be senior, unsecured obligations of Bitdeer, maturing on August 15, 2029, with additional details such as the interest rate and conversion rate to be determined at the time of pricing. The company also plans to offer underwriters a 30-day option to purchase an additional $22.5 million in notes to cover potential over-allotments, according to Theminermag.

Bitdeer intends to use the proceeds from this offering to expand its data centers, develop ASIC-based mining rigs, and meet general corporate needs. This offering follows similar moves by Marathon and Core Scientific, which raised $300 million and $400 million, respectively, through convertible notes to bolster their operations. The rise in debt financing comes as public Bitcoin mining companies face squeezed margins due to higher operational costs and reduced Bitcoin rewards.

Despite these fundraising efforts, Bitdeer’s stock price fell by 13% in pre-market trading on Thursday. The company had previously raised $150 million through stock offerings in the first half of 2024. This trend of increasing debt financing indicates that while equity financing slowed slightly from $1.9 billion in Q1 to $1.6 billion in Q2, mining companies are increasingly turning to debt to sustain their operations amid challenging market conditions.