Tether Holdings, the issuer of stablecoins, has made a significant investment in Bitdeer Technologies Group, a US-listed Bitcoin mining company owned by Chinese billionaire Jihan Wu.
The deal involves a $100 million investment, with an option to purchase an additional $50 million in shares over the next year.
Bitdeer announced today (Friday) that the agreement includes a private placement of 18.6 million Class A ordinary shares, yielding $100 million in gross proceeds.
Additionally, there is an option to buy up to five million more shares at $10 each.
The private placement, facilitated by Cantor Fitzgerald, concluded on Thursday.
This investment aims to support Bitdeer’s growth plans, which include developing ASIC-based crypto mining equipment, expanding data center operations, and meeting general corporate needs.
However, the exact percentage of Bitdeer owned by Tether following this agreement is undisclosed, as Tether has not yet commented.
For Tether, this investment represents a strategic move into Bitcoin mining. Last year, the company began constructing mining facilities in Uruguay, Paraguay, and El Salvador, planning to invest half a billion dollars within six months.
Bitdeer, based in Singapore, is one of the largest publicly listed crypto miners in the US, with a market capitalization of around $670 million.
Despite a 40% drop in share value this year, Bitdeer’s shares rose 6.5% to $6.20 following the announcement.
In March, Bloomberg News reported that Bitdeer was in talks with private credit firms to secure around $100 million in financing.
It is unclear if these discussions are ongoing after Tether’s investment.
Bitcoin mining requires power-intensive computers to secure the blockchain network, earning new tokens as a reward.
In April, the Bitcoin network underwent a programmed upgrade, known as a halving, which reduced the profitability of Bitcoin mining by about half.
This acquisition by Tether marks a significant step towards expanding its presence in the Bitcoin mining industry, reflecting its growing interest and investment in the sector.