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Tether invests up to $150 million in cryptocurrency mining firm Bitdeer
On Friday, Tether announced that it has entered into an underwriting agreement with Bitdeer to purchase up to $150 million worth of shares in a private placement.
The agreement includes 18,587,360 shares of Class A common stock and a warrant to purchase up to 5,000,000 additional shares at $10.00 per share, according to the press release. Bitdeer the stock is currently trading between $6 and $7 per share.
On Thursday, the private placement transaction yielded $100 million in gross proceeds from the issuance of shares, with the potential to raise another $50 million if the warrant is fully exercised.
“We view Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, differentiated by its cutting-edge technologies and strong R&D organization,” he said Paolo ArdoinoCEO of Bind, in the press release. “Bitdeer’s proven track record and world-class management team are perfectly aligned with Tether’s long-term strategic vision. We expect close collaboration with Bitdeer in several key infrastructure areas to continue.”
Bitdeer Shares (BTDR) is up more than 13% in intraday trading at the time of writing, indicating the market’s positive response to Tether’s investment.
Tether’s interest in BTC mining
This investment marks a significant step forward Bind, the developer of the world’s largest stablecoin, USDT. This shows that Tether is willing to invest in Bitcoin (Bitcoin) mining, reflecting his broader interest in developing the crypto economy. Tether protects a critical aspect of the crypto ecosystem by supporting Bitcoin mining.
This move is in line with Tether’s broader strategy to diversify its portfolio and strengthen the stability and reliability of its USDT token by investing in blockchain technology, such as the technology provided by Bitdeer.