Tether Allocates $150 Million Investment to Crypto Mining Giant Bitdeer
On May 31, Tether revealed its commitment to invest up to $150 million in Bitdeer through a subscription agreement for a private share placement.
According to a press statement, the latest deal includes the issuing of 18,587,360 Class A ordinary shares, as well as a warrant to purchase up to 5,000,000 additional shares for $10.00 per share. Bitdeer's shares are now selling around $6 to $7 per share.
On Thursday, the private placement deal resulted in $100 million in gross revenues from the share sale. An additional $50 million might be raised if the warrant is fully exercised.
Paolo Ardoino, CEO of Tether, commended Bitdeer in the press announcement, saying, "We regard Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, distinguished by its cutting-edge technologies and robust R&D organization." Bitdeer's established track record and world-class management team are perfectly suited to Tether's long-term strategic goals. We foresee further close engagement with Bitdeer in various crucial infrastructural areas."
The market reacted warmly to Tether's investment, with Bitdeer's stock (BTDR) surging more than 13% in intraday trade as of writing.
This investment marks a big milestone for Tether, the originator of the world's largest stablecoin, USDT, as it enters the Bitcoin (BTC) mining industry. Tether's investment in Bitcoin mining demonstrates its commitment to supporting the broader cryptocurrency ecosystem. This smart decision not only demonstrates Tether's commitment to the development of the crypto economy but also ensures a vital component of this ecosystem by strengthening Bitcoin mining infrastructure.
Furthermore, this transaction is consistent with Tether's overall objective to diversify its portfolio and improve the stability and durability of its USDT coin. Tether intends to strengthen its position in the business and maintain the viability of its operations by investing in breakthrough blockchain technology provided by firms such as Bitdeer.
Tether's investment in Bitdeer demonstrates its strategic objective of integrating cutting-edge technologies and strengthening important alliances to enhance the cryptocurrency infrastructure. This move is expected to create strong collaboration between Tether and Bitdeer, with a focus on numerous critical infrastructural sectors, ultimately promoting growth and innovation in the Bitcoin mining industry.
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