On Friday, the publicly listed mining company Bitdeer Technologies Group revealed that the leading stablecoin firm Tether has purchased $100 million in Bitdeer shares. Additionally, Tether holds an option to acquire an additional $50 million in shares in the future.
Bitdeer Announces $100 Million Investment From Tether
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Bitdeer and Tether Forge Partnership With $100 Million Share Purchase
Tether has acquired $100 million worth of shares in a private placement financing led by the mining company Bitdeer (Nasdaq: BTDR). The stablecoin issuer purchased 18,587,360 Class A ordinary shares of BTDR, with an option to buy an additional 5 million shares at $10 each. As of press time, BTDR shares are valued at $5.82 per unit. Bitdeer announced that the private placement was finalized on May 30, 2024.
“We are thrilled to welcome Tether as a significant investor in Bitdeer,” the Chief Business Officer at Bitdeer Linghui Kong remarked. “With Tether’s support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient bitcoin mining,” the Bitdeer executive added.
This isn’t Tether’s initial venture into the bitcoin mining sector, as the company began announcing its mining expansion plans last year. In June 2023, the stablecoin firm further invested in El Salvador’s Volcano Energy mining project. By mid-November, Tether provided more details about its mining expansion strategy. Besides its involvement with Bitdeer, Tether also maintains a business relationship with the mining company Northern Data.
Friday’s announcement revealed that Bitdeer will use the proceeds to advance its application-specific integrated circuit (ASIC) mining rig development. The funds will also support working capital, according to Bitdeer. The company has been consistently progressing on its mining chip and recently engaged Taiwan Semiconductor Manufacturing Company (TSMC) for $60 million in hardware production.
At the end of March, Bitdeer was reported to be seeking this funding, reaching out to private firms to raise $100 million. It appears Tether accepted the company’s offer. “Bitdeer’s proven track record and world-class management team are perfectly aligned with Tether’s long-term strategic vision,” Paolo Ardoino, the CEO of Tether said. “We anticipate close collaboration with Bitdeer across several key infrastructure areas moving forward.”
What do you think about Tether investing in Bitdeer? Share your thoughts and opinions about this subject in the comments section below.
