Tether, the developer of the world’s largest stablecoin USDT, has announced a significant investment in Bitdeer, a leading player in the Bitcoin mining industry. The investment, totaling up to $150 million, underscores Tether’s commitment to supporting and strengthening the crypto economy.
According to the announcement, Tether has entered into a subscription agreement with Bitdeer to purchase up to $150 million of shares in a private placement. The deal includes 18,587,360 Class A ordinary shares and a warrant to acquire up to 5,000,000 additional shares at $10.00 per share. Notably, Bitdeer shares currently range between $6 to $7 each.
In a statement, Paolo Ardoino, CEO of Tether, expressed confidence in Bitdeer’s capabilities and leadership, highlighting its advanced technologies and robust research and development organization. Ardoino emphasized the strategic alignment between Tether and Bitdeer and anticipated close collaboration across key infrastructure areas in the future.
The private placement transaction, which yielded $100 million in gross proceeds from the initial share issuance, has already shown a positive market response. Bitdeer’s stock (BTDR) surged over 13% in intraday trading following the announcement, reflecting investor enthusiasm for Tether’s investment.
This move by Tether marks a significant step into Bitcoin mining, indicating its broader interest in developing and supporting critical aspects of the crypto ecosystem. By investing in Bitdeer, Tether aims to reinforce the stability and reliability of its USDT token while diversifying its portfolio and contributing to the growth of blockchain technology.
Overall, Tether’s investment in Bitdeer underscores its commitment to advancing the crypto economy and securing essential infrastructure for the future of digital finance.
