Bitdeer gains $150 million from Tether for ASIC-based mining rig development
Stablecoin issuer Tether has entered into an agreement to acquire up to $150 million worth of shares from prominent Bitcoin mining firm Bitdeer via a private placement deal, according to a May 31 statement.
Under the agreement, Tether has acquired 18,587,360 Class A ordinary shares from the BTC miner for $100 million. It could purchase up to 5,000,000 additional shares at $10.00 per share, translating to an extra $50 million. Cantor Fitzgerald & Co. acted as the private placement agent.
Following the news, Bitdeer shares jumped over 8% at pre-market trading to $6.35 as of press time, according to Google Finance data.
Bitdeer to fund expansion
The Singapore-based company intends to use the net proceeds from this investment to fund its data center expansion, ASIC-based mining rig development, working capital, and other general corporate purposes.
Bitdeers chief business officer, Linghui Kong, said:
With Tethers support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient bitcoin mining. This partnership marks a significant milestone for Bitdeer, and we look forward to achieving great things together.
Paolo Ardoino, CEO of Tether, added:
Bitdeers proven track record and world-class management team are perfectly aligned with Tethers long-term strategic vision. We anticipate close collaboration with Bitdeer across several key infrastructure areas moving forward.
Tethers growing businesses
This latest venture marks Tethers ongoing push into the crypto mining sector, following a significant capital investment in Swans Managed Bitcoin Mining service.
In Apil, Tether revealed it was splitting into four divisionsTether Data, Tether Finance, Tether Power, and Tether Eduto reflect its broader interest in developing the emerging industry. The company revealed that this move aimed to broaden its influence and diversify beyond its core stablecoin operations.
Meanwhile, these diversification efforts coincide with Tethers record financial performance. During the first quarter, the company posted substantial profits, with its USDT market capitalization rising to a new high of $111 billion, accounting for 77% of the top 10 stablecoins trading volumes on centralized exchanges, according to CCData.
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