Jim Cramer on Bitdeer: “I Doubt It’ll Ever Be the Next Cisco”

Bitdeer Technologies Group (NASDAQ:BTDR) is one of the stocks Jim Cramer discussed recently. Cramer highlighted the reason for the company’s stock price decline, as he commented:

“Let me give you a story that’s right out of the year 2000. There’s this company called Bitdeer Technologies Group, which calls itself ‘a world-leading technology company for Bitcoin mining and AI cloud.’ It just priced $400 million of a 4% convertible senior note. It also priced more than 10.6 million class A ordinary shares for certain holders of its 5.25% convertible senior notes. Bitdeer intends to use a big chunk of the proceeds to pay down about 300 million in convertible debt from a previous transaction, though the actual proceeds really weren’t that clear.

Whatever’s left, they plan to spend on, yes, data center expansion. Now, look, I don’t mean to pick on Bitdeer, it’s probably a fine company. It’s lost a lot… of money, though. I mean, financing knocked the stock down 20%. That’s like 2000. It was at $27.80 on October 15th. It’s now at $11. Again, like 2000. What happened with this Bitdeer? Financing is exactly what kept happening in 2000. Companies that were big money losers kept selling stock or bonds, convertible bonds to raise money at any price they could get. Maybe this is the kind of offering that works out. Maybe Bitdeer turns out to be the next Core Scientific or maybe the next CoreWeave, which did do well off that IPO, but I doubt it’ll ever be the next Cisco.”

Photo by andre-francois-mckenzie on Unsplash

Bitdeer Technologies Group (NASDAQ:BTDR) provides blockchain and high-performance computing solutions, including hash rate services, mining rig hosting, and cryptocurrency mining. Moreover, the company offers software and platforms to optimize mining operations and sells mining equipment.

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Disclosure: None. This article is originally published at Insider Monkey.