Key Takeaways
- Tether has partnered with Bitdeer to invest $150 million in Bitcoin mining.
- Bitdeer plans to use the funds to expand data centers and develop ASIC mining rigs.
- Bitdeer went public on Nasdaq in April 2023 following a SPAC merger.
Tether, the operator of the world’s largest stablecoin, has invested up to $150 million in Jihan Wu’s cryptocurrency mining firm Bitdeer.
This investment involves purchasing 18,587,360 Class A ordinary shares and a warrant for an additional 5,000,000 shares at $10 per share.
The private placement deal, announced on May 31, generated $100 million initially, with the potential for an additional $50 million if the warrant is fully exercised.
Bitdeer plans to use these funds to expand its data centers and develop advanced ASIC-based mining rigs.
Bitdeer, established in 2018 and spun off from Chinese mining machine maker Bitmain, is recognized for its vertically integrated business model.
This model gives the company full control over its production and distribution processes.
Linghui Kong, Bitdeer’s Chief Business Officer said:
We are thrilled to welcome Tether as a significant investor in Bitdeer.
He emphasized that Tether’s investment would help Bitdeer accelerate its growth and maintain its leadership in sustainable Bitcoin mining.
Tether CEO Paolo Ardoino praised Bitdeer’s technological advancements and management team, highlighting their alignment with Tether’s strategic vision.
Ardoino anticipates close collaboration between the two companies on various infrastructure projects.
Bitdeer, headquartered in Singapore, went public on Nasdaq in April 2023 via a SPAC merger with Blue Safari Group Acquisition.
The firm’s founder, Jihan Wu, took over as CEO in March, while Kong transitioned to Chief Business Officer. Wu previously co-founded Bitmain in 2013.
