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Tether investing up to $150 million in crypto mining firm Bitdeer
On Friday, Tether announced that it had entered into a subscription agreement with Bitdeer to purchase up to $150 million worth of shares in a private placement.
The agreement includes 18,587,360 shares of Class A common stock and a warrant to purchase up to an additional 5,000,000 shares at $10.00 per share, according to the press release. Bitdeer shares are currently trading between $6 and $7 per share.
On Thursday, the private placement transaction yielded $100 million in gross proceeds from the share issuance, with the chance to raise an additional $50 million if the warrant is fully exercised.
“We consider Bitdeer to be one of the strongest vertically integrated operators in the Bitcoin mining industry, differentiated by its cutting-edge technologies and robust R&D organization,” he said Paulo ArdoinoCEO of To tie, in the press release. “Bitdeer’s proven track record and world-class management team are perfectly aligned with Tether’s long-term strategic vision. We anticipate close collaboration with Bitdeer on several important infrastructure areas in the future.”
Bitdeer shares (BTDR) was up over 13% in intraday trading at the time of writing, indicating the market’s positive response to the Tether investment.
Tether’s interest in BTC mining
This investment marks a significant step since To tie, the developer of the world’s largest stablecoin, USDT. This shows that Tether is willing to invest in Bitcoin (Bitcoin) mining, reflecting its broader interest in the development of the cryptoeconomy. Tether protects a critical aspect of the crypto ecosystem by supporting Bitcoin mining.
This move is in line with Tether’s broader strategy to diversify its portfolio and reinforce the stability and reliability of its USDT token by investing in blockchain technology, such as the technology provided by Bitdeer.