Bitdeer gets $150 million from Tether to develop ASIC-based mining equipment.
According to a statement on May 31, stablecoin issuer Tether has signed an agreement to acquire up to $150 million worth of shares from prominent Bitcoin mining company Bitdeer in a private placement transaction. It is said that a contract has been signed.
Under this agreement, Tether acquired 18,587,360 shares of Class A common stock from the BTC miner for $100 million. You can purchase up to 5,000,000 additional shares at $10 per share, giving you an additional $50 million. Cantor Fitzgerald & Co. acted as private placement agent.
Following the news, Bitdeer shares rose more than 8% to $6.35 in pre-market trading as of press time, according to Google Finance data.
Bitdeer Expands Funding
The Singapore-based company plans to use the net proceeds from this investment to fund data center expansion, development of ASIC-based mining equipment, working capital and other general corporate purposes.
Linghui Kong, Chief Business Officer at Bitdeer, said:
“With Tether’s support, we are poised to accelerate our growth and maintain our leadership in sustainable and efficient Bitcoin mining. This partnership is an important milestone for Bitdeer, and we look forward to achieving great things together.”
Paolo Ardoino, CEO of Tether, added:
“Bitdeer’s proven track record and world-class management team are perfectly aligned with Tether’s long-term strategic vision. We look forward to working closely with Bitdeer in several key infrastructure areas in the future.”
Tether’s growing business
This latest venture marks Tether’s continued foray into the cryptocurrency mining sector, following its significant capital investment in Swan’s. Managed bitcoin Mining services.
In Apil, Tether said it was splitting into four divisions – Tether Data, Tether Finance, Tether Power and Tether Edu – to reflect its broader interest in developing emerging industries. The company said the move aims to expand its influence and diversify beyond its core stablecoin operations.
Meanwhile, these diversification efforts are consistent with Tether’s record-breaking financial performance. According to CCData, during the first quarter, the company recorded significant gains, with USDT market capitalization hitting a new high of $111 billion. This accounts for 77% of the volume of the top 10 stablecoins on centralized exchanges.
