Jihan Wu’s cryptocurrency mining company, Bitdeer, has announced a significant capital increase facilitated by Tether, the operator of the world’s largest stablecoin project, Tether (USDT). On May 31, Tether disclosed that it signed a subscription agreement to purchase $150 million worth of Bitdeer shares through a private transaction.
Details of the Investment
The private transaction involves 18,587,360 Class A ordinary shares and includes an option to acquire up to 5,000,000 additional shares at $10 each. The share issuance on May 30 generated $100 million in gross proceeds, with the potential for an additional $50 million if the full order is executed. Bitdeer plans to utilize the new funds to expand its data centers, develop ASIC-based mining hardware, and support other operational purposes.
Bitdeer’s Chief Operating Officer, Linghui Kong, highlighted the importance of Tether’s investment, stating that Tether’s support would accelerate the company’s growth and help maintain leadership in sustainable and efficient Bitcoin mining. Kong expressed excitement about the partnership and its potential milestones.
Thoughts from Tether’s CEO
Tether CEO Paolo Ardoino praised Bitdeer as a leading operator in the Bitcoin mining sector due to its cutting-edge technologies and robust research and development. Ardoino pointed out that Bitdeer’s track record and management team align well with Tether’s long-term strategic goals, envisioning future collaborations in critical infrastructure areas.
Key Takeaways
Here are some concrete and valuable inferences from the Tether-Bitdeer collaboration:
- This investment allows Bitdeer to expand its infrastructure and technology, potentially increasing its market share in Bitcoin mining.
- Tether’s involvement signifies a strong endorsement of Bitdeer’s operational capabilities and strategic vision.
- The investment may boost confidence among other potential investors and stakeholders in the cryptocurrency mining industry.
These actionable insights can help stakeholders make informed decisions regarding future investments and collaborations within the sector.
Tether’s collaboration with Bitdeer is part of a broader strategy to strengthen its reserves, which include U.S. Treasury funds and commodities such as Bitcoin. By investing in Bitdeer, Tether aims to bolster its financial stability and continue its involvement in the mining industry.