Tether Commits $150M To Bitdeer, Expanding Crypto Mining Ventures

Jihan Wu’s cryptocurrency mining firm Bitdeer is securing new capital from Tether, the operator of the world’s largest stablecoin, USDT.

Tether has committed to purchasing up to $150 million worth of Bitdeer’s shares through a subscription agreement, as announced on May 31.

However, this private placement involves 18,587,360 Class A ordinary shares and includes a warrant for an additional 5,000,000 shares at $10.00 per share.

According to the announcement, the transaction on May 30 generated $100 million in gross proceeds, with the potential to raise an additional $50 million if the warrant is fully exercised.

Tether Backs Bitdeer For Sustainable Growth In Bitcoin Mining

Moreover, Bitdeer will use the fresh net proceeds to fund its data center expansion, develop application-specific integrated circuit (ASIC)-based mining rigs, and pursue other initiatives.

“We are thrilled to welcome Tether as a significant investor in Bitdeer,” said Bitdeer Chief Business Officer Linghui Kong. He added:

“With Tether’s support, we are poised to accelerate our growth and maintain our leadership in sustainable and efficient bitcoin mining. However, this partnership marks a significant milestone for Bitdeer, and we look forward to achieving great things together.”

However, Tether CEO Paolo Ardoino praises Bitdeer as a leading vertically integrated operator in the Bitcoin mining industry. He attributes this to their cutting-edge technologies. Additionally, their strong research and development efforts play a crucial role in their success.

“Bitdeer’s proven track record and world-class management team align perfectly with Tether’s long-term strategic vision,” Ardoino stated.

“We anticipate close collaboration with Bitdeer across several key infrastructure areas moving forward.”

Related Reading | Grayscale Advances Plans For Spot Ethereum ETF

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

Comments (No)

Leave a Reply