Tether investing up to $150M in crypto mining firm Bitdeer

On Friday, Tether announced that it had signed a subscription agreement with Bitdeer to purchase up to $150 million in shares in a private placement.

The deal includes 18,587,360 shares of Class A common stock and a warrant to purchase up to 5,000,000 additional shares at $10.00 per share, according to the press release. Bitdeer shares are currently trading between $6 and $7 per share.

As of Thursday, the private placement transaction generated $100 million in gross proceeds from the share issuance, with a chance to raise an additional $50 million if the order is fully executed.

“We see 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,” Tether CEO Paolo Ardoino said 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 collaborating closely with Bitdeer in many important infrastructure areas going forward.”

Shares of Bitdeer (BTDR) are up over 13% in intraday trading at the time of writing, indicating that the market has responded positively to Tether’s investment.

Tether’s interest in BTC mining

This investment marks an important step from Tether, the developer of the world’s largest stablecoin USDT. This shows that Tether is willing to invest in Bitcoin (BTC) mining, reflecting its interest in developing the crypto economy. By supporting Bitcoin mining, Tether secures a critical aspect of the crypto ecosystem.

This move is in line with Tether’s broader strategy to diversify its portfolio and strengthen the stability and reliability of its USDT token by investing in blockchain technology, such as the technology provided by Bitdeer.