Tether invests in BitDeer, becoming a major shareholder by purchasing $100 million worth of BTDR.

The mining company Bitdeer announced a private placement financing of up to $150 million, as reported here, selling $100 million worth of shares to the stablecoin issuer Tether, and purchasing an additional $50 million in warrants within 12 months. Bitdeer will use the funds for expanding its data centers, developing ASIC-based mining equipment, operational capital, and other general corporate purposes.

Tether Emerges as Major Shareholder of Bitdeer

According to CNBC, Bitdeer has 118 million shares outstanding. In a recent private placement, Tether acquired 18,587,360 Class A common shares, representing 15% of the total shares, making Tether the largest shareholder of Bitdeer. The transaction also includes warrants for Tether to purchase up to 5 million shares at $10 per share. If fully exercised, this will bring an additional $50 million to Bitdeer. Tether has the option to exercise this within 12 months. Encouraged by this acquisition, Bitdeer's stock, with the code BTDR, rose by 5.33% last Friday to close at $6.13, although still below Tether's subscription price.

Bitdeer's Chief Business Officer, Kong Linghui, stated:

We are delighted to welcome Tether as a significant investor in Bitdeer. With Tether's support, we are poised to accelerate growth and maintain a leading position in sustainable and efficient Bitcoin mining. This collaboration marks a significant milestone for Bitdeer, and we look forward to achieving great things together.

Tether Actively Expands Its Footprint

Tether's CEO, Paolo Ardoino, also commented:

Tether is excited to partner with Bitdeer. We view Bitdeer as one of the most powerful vertically integrated operators in the Bitcoin mining industry, distinguished by its cutting-edge technology and strong research and development organization. We anticipate close collaboration with Bitdeer in several key infrastructure areas in the future.

The leading stablecoin issuer, Tether, announced in April the establishment of four new business units to expand beyond stablecoins into the financial and technological ecosystem. One of them is Tether Power - the sustainable Bitcoin mining and energy division. Additionally, Tether strategically invested in Northern Data Group, a former Bitcoin miner transitioning to a cloud GPU operator.

Tether's expansion strategy aims to build decentralized infrastructure with multiple initiatives.