Bitdeer Stock Surges Pre-Market On Billion-Dollar Fund-Raise Plans: Retail’s Worried About Potential Dilution

Shares of Bitdeer Technologies Holding surged as much as 9% in pre-market trading on Wednesday, building on its 5% gains in the previous session, after the Bitcoin miner revealed plans to raise up to $1 billion through the issuance of shares, debt securities, and warrants. 

“The principal purpose of an offering would be to increase our capitalization and financial flexibility and the net proceeds from our sale of the securities will be used for general corporate purposes and other business opportunities,” the company said in its SEC filing. 

The Bitcoin miner currently operates six mining data centers in the U.S., Norway, and Bhutan., with a total managed hash rate of 20.7 exahashes per second (EH/s) as of Nov. 30. 

“We expect to continue increasing our hash rate through 2024 and beyond through conversion of our existing hosting capacity, executing on pipeline capacity, and pursuing expansion opportunities on a global scale,” the company said. 

This announcement follows a 27% jump in Bitdeer’s stock price in December after it released its November production numbers. Despite a drop in self-mined Bitcoin—from 174 in October to 150 in November—retail and institutional interest has remained strong.

Earlier this week, Benchmark raised its price target on the stock to $29 from $16, while maintaining a ‘Buy’ rating. 

The brokerage cited three key growth drivers:

• Bitdeer’s development and operation of data centers for artificial intelligence (AI) and high-performance computing (HPC) projects.
• Ongoing hash rate expansion aimed at enhancing Bitcoin self-mining operations.
• Efforts to design and manufacture next-generation ASIC chips and Bitcoin mining rigs.

Bitdeer Sentiment and Message Volume on Dec 12 as of 8:15 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Bitdeer dipped to ‘bearish’ from ‘bullish’ a day ago amid concerns over potential dilution from the $1 billion offering.

Unlike peers Marathon Holdings and Riot Platforms, where the former has only gained 1.4% and the latter has accumulated a loss of over 26% so far this year, Bitdeer has gained alongside Bitcoin’s bull run with a surge of over 124% in its stock price during the same period. 

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Read also: Riot Platforms Stock Edges Lower On Completing $525M Fund Raise To Buy Bitcoin: Retail Waiting For Rally