Tether Invests $100M in US-Listed Bitcoin Mining Company Bitdeer

Stablecoin issuer Tether Holdings Ltd. has invested $100 million in Bitdeer Technologies Group, a US-listed Bitcoin mining company owned by Chinese billionaire

Stablecoin issuer Tether Holdings Ltd. has made a $100 million equity investment in Bitdeer Technologies Group, a U.S.-listed Bitcoin mining company controlled by Chinese billionaire Jihan Wu.

On May 30, 2024, Bitdeer sold 18,587,360 Class A ordinary shares to Tether, according to a statement. The company also granted Tether an option to buy an additional 5 million shares at $10 each, which could raise another $50 million.

The shares were not registered under the Securities Act of 1933 or state securities laws, and they may not be offered or sold in the United States without registration or an applicable exemption. Bitdeer said it planned to file registration statements with the U.S. Securities and Exchange Commission for the resale of shares issued in this private placement.

Cantor Fitzgerald & Co. acted as the placement agent for the transaction.

The agreement marks a significant step for Tether in its quest to become a major player in Bitcoin mining. Last year, the company began building out mining facilities in Uruguay, Paraguay and El Salvador, and it pledged to invest $500 million within six months.

Bitdeer, which was founded in 2018 as a spin-off from Bitmain, operates data centers in the United States, Norway and Bhutan. It manages equipment procurement, logistics, construction and daily operations at these facilities.

The company also provides advanced cloud capabilities for AI-intensive tasks. According to the statement, Bitdeer plans to allocate these funds towards expanding its data centers, developing ASIC-based mining rigs and supporting general corporate activities.

“We regard Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, differentiated by its cutting-edge technologies and a robust R&D organization,” said Paolo Ardoino, Tether’s CEO. “Bitdeer's proven track record and world-class management team align perfectly with Tether's long-term strategic vision. We anticipate close collaboration with Bitdeer across several key infrastructure areas moving forward.”

Mining is just one of the areas that Tether is currently focused on. The largest stablecoin issuer has been actively diversifying beyond its core operations. In April, the company reorganized into four divisions: Tether Data, Tether Finance, Tether Power and Tether Edu. This restructuring aims to extend the company’s influence across various sectors of the emerging crypto industry.

The company’s strategy has proven successful, as evidenced by its financial results. In the first quarter, Tether reported significant profits. USDT's market capitalization reached a record $111 billion, which accounted for 77% of the trading volume among the top ten stablecoins on centralized exchanges.

Tether’s investment in Bitdeer is a strategic step in the development of the crypto economy. By supporting Bitcoin mining, the company secures a critical component of the crypto ecosystem. This move aligns with Tether's broader strategy to diversify its portfolio and reinforce the stability and reliability of USDT through investments in blockchain technology, exemplified by its partnership with Bitdeer.