Tether Makes Strategic $150M Investment in Leading Bitcoin Miner Bitdeer

In a strategic move to bolster its investment portfolio, Tether, the operator of the world’s largest stablecoin USDT, has announced a substantial investment in Bitdeer, a prominent cryptocurrency mining company.

The investment involves a subscription agreement where Tether will purchase up to $150 million worth of shares in a private placement. This includes an initial purchase of 18,587,360 Class A ordinary shares alongside a warrant, which allows for the acquisition of up to an additional 5,000,000 shares at a price of $10.00 each. The private placement has already generated $100 million in gross proceeds from the share issuance and could see an additional $50 million if the warrant is fully exercised.

Bitdeer – A Major Player in Cryptocurrency Mining

Bitdeer, which was established in 2018 and spun off from Chinese mining machine manufacturer Bitmain, is one of the largest cryptocurrency mining companies globally. The firm’s operations encompass proprietary and host mining, servicing clients with comprehensive infrastructure and facilities. It operates a vertically integrated business model, which gives the company complete control over its production chain from raw materials to sales.

The fresh capital infusion from Tether will primarily fund Bitdeer’s expansion of its data centers and the development of a new application-specific integrated circuit (ASIC)-based mining rig, among other projects. Linghui Kong, recently appointed as Chief Business Officer of Bitdeer, expressed enthusiasm about Tether’s involvement, emphasizing the acceleration of growth and continued leadership in sustainable Bitcoin mining that the partnership is expected to bring.

Paolo Ardoino, CEO of Tether, lauded Bitdeer for its strong presence in the industry, bolstered by cutting-edge technology and significant research and development efforts. He highlighted the alignment of Bitdeer’s operations with Tether’s strategic goals and foresaw close collaboration in key infrastructure areas moving forward.

Market Cheers Tether’s Investment in Bitdeer

Bitdeer is headquartered in Singapore and became a publicly traded entity on Nasdaq in April 2023, following a merger with Blue Safari Group Acquisition, a special purpose acquisition company (SPAC).

The initial announcement of the SPAC merger was made back in November 2021. Since going public, Bitdeer has shown impressive financial growth, with its total revenue climbing to $368.6 million in 2023, up from $333.3 million the previous year. The firm also successfully tested its internally designed bitcoin mining chip, SEAL01.

The recent leadership transition saw Jihan Wu, co-founder of Bitmain, stepping in as CEO of Bitdeer in March, following his departure from Bitmain, which he left to start Bitdeer in 2020. Linghui Kong, in turn, took on the role of chief business officer.

The market responded positively to the announcement of Tether’s investment, with Bitdeer’s stock (BTDR) experiencing an over 13% rise in intraday trading. This surge reflects investor confidence in the strategic partnership and Bitdeer’s robust financial health. 

Tether’s Diversification and Record Performance

In addition to its core stablecoin operations, Tether has been actively diversifying its business. In April, the company restructured into four divisions: Tether Data, Tether Finance, Tether Power, and Tether Edu, aiming to extend its influence across various sectors of the emerging crypto industry. This reorganization aligns with Tether’s strategy to broaden its market impact and diversify its investments.

These diversification efforts have coincided with a record performance by Tether. In the first quarter, the company achieved substantial profits, with its market capitalization of USDT hitting a new peak of $111 billion, accounting for 77% of the trading volume among the top ten stablecoins on centralized exchanges, as reported by CCData.

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