- In a remarkable development, Tether has acquired a significant portion of shares in Bitcoin miner Bitdeer, according to a recent SEC filing.
- This acquisition elevates Tether to being the second-largest shareholder in Bitdeer, second only to Victory Courage Ltd., a firm linked to Bitdeer CEO Jihan Wu.
- “With Tether’s support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining,” remarked Linghui Kong, Chief Business Officer of Bitdeer, in a recent press release.
Tether takes a strategic leap in mining investment by securing a substantial stake in Bitdeer, showcasing strong market confidence.
Tether Acquires Significant Stake in Bitdeer
Tether, the issuer of the popular USD-backed stablecoin USDT, has completed a significant transaction, acquiring a substantial 25% stake in Bitcoin miner Bitdeer. This notable move was confirmed through a recent U.S. Securities and Exchange Commission (SEC) filing, marking Tether as the second-largest shareholder in the mining company. The largest shareholder remains Victory Courage Ltd., under the leadership of Jihan Wu, who co-founded and formerly led the ASIC manufacturing powerhouse, Bitmain.
Bitdeer Shares See Upward Momentum
Bitdeer shares are currently trading at $7.15, reflecting a 2% increase since the opening of the U.S. markets. Over May, the shares have experienced a remarkable surge of 26%. In the SEC filing shared on Thursday, Tether Holdings Limited disclosed its control over 23,587,360 Bitdeer (BTDR) shares. This increase in holdings is attributed to a private placement deal finalized with Bitdeer the previous week, allowing the Bitcoin miner to raise $100 million in financing. The deal also includes an option for Tether to purchase up to 5,000,000 additional shares at $10.00 each over the next year.
Utilizing Funds for Expansion and Technological Development
Bitdeer plans to allocate the proceeds from this deal towards several strategic goals, including expanding data centers and developing advanced ASIC-based mining rigs. These funds will also be utilized for other general corporate purposes, bolstering the company’s operations and strategic initiatives. Linghui Kong, Chief Business Officer of Bitdeer, emphasized the positive impact of this partnership. “With Tether’s support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining,” he stated in a press release.
Bitdeer’s Journey to Nasdaq
Bitdeer’s path to its current Nasdaq listing has been marked by various challenges and delays. The company went public last year through a SPAC (Special Purpose Acquisition Company) merger with Blue Safari Group, following several postponements. Now traded under the BTDR ticker, Bitdeer showcases how strategic partnerships and investments can significantly impact its market presence and operational ambitions.
Tether’s Expanding Investment Portfolio
Besides the investment in Bitdeer, Tether has also been expanding its investment horizons. Recently, it invested $19 million in XREX Group, a company backed by the Taiwanese Government National Development Fund. The aim is to develop cross-border B2B payments using USDT and launch XAU1, XREX’s own USD-pegged stablecoin. Moreover, XREX Singapore, the startup’s Singapore entity, has secured the Monetary Authority of Singapore’s Major Payment Institution License, allowing it to operate as a payment processor in the region.
Conclusion
Tether’s strategic investments, such as acquiring a significant stake in Bitdeer and funding XREX Group, highlight its commitment to expanding its influence and operational domains in the cryptocurrency industry. These moves not only underscore Tether’s confidence in the future of cryptocurrency mining and cross-border payments but also position it as a pivotal player in these rapidly evolving markets.
