Bitdeer Receives $100 Million Funding from Tether to Enhance Bitcoin Mining Capabilities
Crypto News– Stablecoin issuer Tether Holdings Ltd. has injected $100 million into Bitdeer Technologies Group, a Bitcoin mining firm listed in the US and owned by Chinese billionaire Jihan Wu.
On May 30, 2024, Bitdeer issued 18,587,360 Class A ordinary shares to Tether. Additionally, the company holds the option to acquire an additional 5 million shares at $10 apiece, potentially generating an extra $50 million in funds.
Bitdeer’s Ambitious Growth Strategies
Established in 2018 as a spin-off of Bitmain, Bitdeer currently operates data centers across the US, Norway, and Bhutan. The company oversees various operations, including equipment procurement, logistics, construction, and day-to-day activities. Moreover, it provides cutting-edge cloud capabilities tailored for AI-intensive tasks. With the recent injection of funds, Bitdeer aims to bolster its data center expansion efforts, enhance the development of ASIC-based mining rigs, and support overall corporate endeavors.
Cantor Fitzgerald & Co. facilitated the transaction as the placement agent. Notably, Bitdeer has not registered the securities under the Securities Act of 1933 or state securities laws, thus precluding the offering or sale of these securities in the US without registration or an exemption. To address this, the company intends to file registration statements with the SEC to enable the resale of shares issued in this private placement.
Tether’s Strategic Investment Bears Fruit
The company’s strategy has demonstrated remarkable success, evident from its financial performance. During the first quarter, Tether recorded substantial profits. USDT’s market capitalization soared to an all-time high of $111 billion, representing 77% of the trading volume among the top ten stablecoins on centralized exchanges.
FAQs
How does this investment contribute to Bitdeer’s Bitcoin mining activities?
he investment from Tether will enable Bitdeer to strengthen and expand its Bitcoin mining endeavors, potentially increasing its mining capacity and efficiency.
Why did Tether choose to invest in Bitdeer specifically?
Tether likely invested in Bitdeer due to its established presence and expertise in the Bitcoin mining sector, as well as the potential for mutual benefits and growth opportunities.
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