Bitdeer Signs Subscription Deal with Tether

Bitcoin hardware maker Bitdeer said it received $150 million in private funding from USDT stablecoin provider Tether.

Bitcoin hardware maker Bitdeer announced on Thursday that it had received $150 million in private funding from USDT stablecoin provider Tether. The fund will be used to expand Bitdeer's data center, develop an ASIC-based mining rig, strengthen working capital for ongoing operations and other general corporate purposes.

According to a press release, Bitdeer signed an investment agreement that involves the issuance of 18,587,360 Class A ordinary shares to Tether. Additionally, Tether acquired a warrant to purchase up to five million additional shares. Note that all shares are priced at $10 per share.

The transaction was finalized on Thursday, generating $100 million in immediate proceeds from the share offering. The total investment could reach $150 million when the warrant becomes fully exercised.

The warrant comes with customary safeguards against dilution, including adjustments for share dividends, splits and similar actions. Additionally, it features weighted average anti-dilution protection for share issuances below the initial warrant exercise price. Tether reserves the right to exercise the warrant within a one-year window following the closing date.

Cantor Fitzgerald & Co. acted as the placement agent for this private transaction. However, the securities cannot be offered or sold within the United States without registration or an exemption. Bitdeer said it is committed to filing the necessary registration statements with the U.S. Securities and Exchange Commission (SEC) to facilitate the resale of the shares connected to the recent private placement.

This investment sees Tether, the leading stablecoin provider, further its presence in the stablecoin ecosystem and expand its footprint in the blockchain and high-performance computing sectors.

The news of Tether's investment in Bitdeer is significant for several reasons. First, it shows that Tether is bullish on the future of Bitcoin mining and hardware. Second, the investment will help Bitdeer to expand its operations and develop new products. Third, the deal could help to strengthen the relationship between Tether and Bitdeer, which are two of the leading companies in their respective industries.

As of press time, officials from Tether have yet to publicly comment on the matter or provide any additional insight into the recent investment.