- Bitdeer, a prominent Bitcoin hardware manufacturer, has successfully secured $150 million in private funding from Tether, the issuer of the USDT stablecoin.
- This significant financial boost aims to bolster Bitdeer’s data center expansion, development of ASIC-based mining rigs, and other corporate initiatives.
- Tether’s investment underscores its dedication to the evolving blockchain infrastructure and high-performance computing sectors.
Tether strengthens its foothold in Bitcoin mining with a substantial investment in Bitdeer.
Bitdeer Seals Investment Deal with Tether
In a notable financial maneuver, Bitdeer entered into an investment agreement to issue 18,587,360 Class A ordinary shares to Tether. Each share is valued at $10, reflecting a substantial vote of confidence from the stablecoin provider.
The deal also includes a warrant allowing Tether to purchase an additional five million shares, potentially increasing the total investment to $150 million. The immediate proceeds from this transaction amount to $100 million, with future gains contingent on the exercising of the warrant.
Protective measures against dilution, such as share dividends and splits, are integral to the warrant. Furthermore, weighted average anti-dilution provisions are included for share issuances below the warrant exercise price. Tether has a one-year period post-transaction to exercise its warrant rights.
Cantor Fitzgerald & Co. served as the placement agent for this exclusive private offering. Under U.S. law, these securities require a registration or exemption for sale within the country. Bitdeer is committed to submitting the necessary registration statements with the U.S. Securities and Exchange Commission (SEC) to facilitate the resale of the recently issued shares.
Strategic Implications for Tether
Tether’s $150 million investment in Bitdeer signals its strategic intent to remain at the forefront of the stablecoin industry and blockchain innovations. This move is particularly significant amid rising scrutiny and speculation in the cryptocurrency space.
Despite recent unfounded rumors about USDT delisting from Kraken, Tether’s investment in Bitdeer reinforces its stability and growth prospects. According to Coingecko, USDT currently trades at $0.9977, boasting a market cap of $111 billion and a 24-hour trading volume of $38.8 billion.
Conclusion
This substantial financial infusion from Tether not only empowers Bitdeer’s future ventures but also enhances Tether’s influence in the cryptocurrency landscape. By supporting cutting-edge blockchain infrastructure, Tether demonstrates its unwavering commitment to the future of digital finance and high-performance computing.
