Tether (USDT) Developer Invests $150M in Bitcoin (BTC) Mining Company Bitdeer

On Friday, Tether announced that it had entered into a subscription agreement with Bitdeer to buy up to $150 million worth of shares in a private placement.

Stablecoin issuer Tether announced on Friday that it has entered into a subscription agreement with Bitdeer to acquire up to $150 million in shares through a private placement.

The agreement consists of 18,587,360 Class A ordinary shares and a warrant to purchase up to an additional 5,000,000 shares at $10.00 per share, the press release said. Bitdeer shares are currently trading between $6 to $7 a share.

The private placement transaction will yield $100 million in gross proceeds from the share issuance, with the potential to raise an additional $50 million if the warrant is fully exercised, as reported on Thursday.

“We view Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, distinguished by its cutting-edge technologies, and a robust R&D organization,” said Paolo Ardoino, CEO of Tether, in the press release. “Bitdeer's proven track record and world-class management team are fully aligned with Tether's long-term strategic vision. We look forward to close collaboration with Bitdeer across several key infrastructure areas moving forward.”

Bitdeer (BTDR) stock is up over 13% in intraday trading at press time, indicating a favorable market response to the Tether investment.

Tether's interest in BTC mining

The investment is a notable move from Tether, the company behind the world's largest stablecoin, USDT. It signals Tether's interest in investing in Bitcoin (BTC) mining, reflecting its broader strategy of developing the crypto economy. By supporting Bitcoin mining, a crucial aspect of the crypto ecosystem, Tether is helping to ensure its stability.

This move also aligns with Tether's wider strategy of diversifying its portfolio and bolstering the stability and reliability of its USDT token through investments in blockchain technology, such as the technology provided by Bitdeer.