Bitcoin mining company Bitdeer Technologies Group told investors it will offer $300mn of convertible senior notes due in 2032, with an additional $45mn option for initial purchasers.
Bitdeer Chases AI Dreams With $300mn Convertible Debt Sale
20 February 2026 - 12:40 CET
By Sandmark staff
It is a complex financial package the company claims will fund capped-call hedges, the partial repurchase of its 2029 convertibles and an aggressive buildout of artificial intelligence and high-performance computing datacenter capacity.
Bitdeer is attempting to achieve two difficult goals at once. It wants to extend and reshape its capital stack while doubling down on an AI cloud strategy it has been publicly building since 2023. If successful, the move would push more of the firm’s capital into higher-margin services. If it fails, the company risks near-term share dilution and further market scepticism.
The market reacts to dilution fears
Market reaction was immediate and brutal. Bitdeer shares slid sharply on the announcement, plummeting nearly 20% during Thursday trading. This aggressive sell-off reflects the inherent fear of retail and institutional investors that convertible debt issuance, even when mitigated by capped calls, usually translates into a massive future equity overhang. Crypto and equities desks noted the stock dropped heavily into double-digit negative territory on day one, showing exactly what the market thinks of miners suddenly rebranding as artificial-intelligence pioneers.
Bitdeer will use a significant part of the proceeds to buy capped-call protection to blunt this conversion dilution. It also intends to repurchase some of its 5.25% November 2029 notes. This is a classic exchange-and-refinance play to stagger maturities and lower the cash interest burden over the coming years. That is prudent capital management, assuming pricing actually goes the way the company expects.
The expensive pivot to artificial intelligence
Bitdeer’s public filings and recent product rollouts show a deliberate pivot from pure cryptocurrency hosting and mining to GPU-heavy AI cloud services. This is a highly competitive segment with far higher upfront capital expenditure but also stronger revenue multiples when use is high. The company has proudly announced NVIDIA-powered deployments and SuperPOD integrations in recent quarters to prove its commitment to the new sector.
That explains why Bitdeer prioritised long-dated convertible paper rather than straight equity. Convertibles preserve the upside to equity appreciation while deferring immediate share issuance. They allow miners to fund their expensive hardware upgrades without immediately flooding the market with new stock.
The capital raise is a logical next step for a miner desperately trying to become an AI infrastructure player to survive the post-halving economic reality. However, wary investors will closely watch the execution, the final note pricing and exactly how much of the existing 2029 paper actually gets retired. If Bitdeer can convert the newly raised capital into sustained use of high-margin GPU racks, the dilution story may look like a temporary blip. If not, the shareholder impatience that showed up immediately is highly likely to persist.
