Tether Unveils $150 Million Investment in Cryptocurrency Mining Firm

Tether, the issuer of the largest stablecoin in the US, has announced that it will be investing $150 million in Bitdeer, a cryptocurrency mining company owned by Jihan Wu. The investment was made through a subscription agreement, which includes the private placement of 18,587,360 Class A common shares and a warrant for the purchase of an additional 5,000,000 shares. The private placement closed on May 30, 2024.
The share issuance generated $100 million in gross proceeds, with the potential for an additional $50 million if the warrant is fully exercised. The warrant is subject to customary anti-dilution provisions and weighted average anti-dilution protection. Tether has the option to exercise the warrant within 12 months of closing.
Bitdeer plans to use the net proceeds to finance the expansion of its data center, develop ASIC-based mining rigs, and for general corporate purposes.
Linghui Kong, Chief Business Officer at Bitdeer, expressed excitement about Tether’s investment, stating that it demonstrates confidence in their vision and global operations. The partnership is expected to accelerate Bitdeer’s growth and maintain its leadership in sustainable bitcoin mining.
Paulo Ardoino, CEO of Tether, praised Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, highlighting their advanced technologies and robust R&D organization.
It is important to note that the views and opinions expressed in this article are for informational purposes only and should not be considered financial or investment advice. Investing or trading cryptocurrencies carries the risk of financial loss.
In other news, Tether (USDT) has recorded over 18 million transactions and is approaching all-time highs. Additionally, analysts believe that Bitcoin is no longer in the “danger zone” and is showing positive signs.