Quick take:
- Tether has entered into a private placement with Bitdeer to purchase 18,587,360 A-shares of Bitdeer at $10.00 per share.
- The company also secured a warrant to purchase up to 5,000,000 additional shares.
- The announcement comes just weeks after Tether reorganised into four divisions as part of its diversification strategy.
Tether, the issuer of the world’s biggest stablecoin by market capitalisation, USDT has accelerated its diversification campaign with a $100 million investment in Bitdeer, a bitcoin mining platform, which recently unveiled plans to expand its BTC mining hash rate to 11.4.
According to the announcement, Tether has entered into a private placement with Bitdeer to purchase 18,587,360 A-shares of Bitdeer at $10.00 per share. The company also secured a warrant to purchase up to 5,000,000 additional shares, for a total of $50 million bringing its stake in Bitdeer to $150 million.
The warrant is subject to customary anti-dilution provisions reflecting share dividends and splits or other similar transactions, Bitdeer wrote in a press release on Thursday.
This announcement follows Tether’s $200 million investment in biotech firm Blackrock Neurotech, made through the USDT issuer’s newly formed venture arm Tether Evo.
The $100 million BTC mining investment will be made through the company’s Power unit, one of the initial four divisions announced in April.
The Singapore-based Bitcoin miner said it will use the net proceeds from the private placement to fund its data centre expansion and ASIC-based mining rig development. Some of the proceeds will also be used for working capital and other general corporate purposes, the company said.
Commenting on the announcement, Linghui Kong, Chief Business Officer of Bitdeer said in a statement: “This substantial investment demonstrates confidence in our vision and the strength of our extensive global operations. With Tether’s support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient bitcoin mining.”
Paolo Ardoino, CEO of Tether added: “We regard Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, differentiated by its cutting-edge technologies, and a robust R&D organization.”
The companies used financial services firm Cantor Fitzgerald & Co as the placement agent for the private placement.
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