Tether, the creator of the popular stablecoin USDT, has acquired a $100 million stake in Bitdeer Technologies Group, a US-based Bitcoin mining company owned by Chinese billionaire Jihan Wu, marking a significant move.<\/p>\n
This deal also includes an option for Tether to buy an additional $50 million worth of shares within the next year, further solidifying its presence in the Bitcoin mining industry.<\/p>\n
According to reports from Bloomberg, Tether and Bitdeer engaged in a private placement deal involving 18.6 million Class A ordinary shares, generating $100 million in proceeds. Additionally, Tether has the option to purchase up to five million more shares at $10 per share through a warrant. The placement was facilitated by Cantor Fitzgerald & Co.<\/p>\n
Bitdeer intends to utilize the funds from this deal to expand its data center operations, develop ASIC-based crypto mining equipment, and for general corporate purposes. The exact percentage of Bitdeer owned by Tether as part of this agreement was not disclosed.<\/p>\n
This move signifies a significant advancement for Tether towards establishing a prominent role in the Bitcoin mining sector. In the past year, Tether initiated the construction of mining facilities in Uruguay, Paraguay, and El Salvador, committing to invest $500 million within half a year.<\/p>\n
Headquartered in Singapore, Bitdeer is one of the largest publicly-listed crypto miners in the US, with a market capitalization of around $670 million. Operating data centers in the US, Norway, and Bhutan, Bitdeer saw a 6.5% rise in its shares to $6.20 following the announcement of this agreement, after experiencing a more than 40% decline earlier this year.<\/p>\n
Earlier in the year, Bitdeer was reportedly in talks with private credit firms for approximately $100 million in financing. The progression of these discussions after Tether’s injection of capital into the company remains uncertain.<\/p>\n
Bitcoin mining involves running energy-intensive computers that secure the blockchain and earn new tokens as rewards. In April, these rewards halved as part of a network upgrade called “The Halving,” which occurs every four years, decreasing the profitability of Bitcoin mining by approximately 50%.<\/p>\n
On a different note, BTC reached a peak of $73,700 in March, driven by optimism surrounding the launch of spot Bitcoin exchange-traded funds in the US. Presently, the leading cryptocurrency is trading at $67,150, indicating a decrease of more than 3% in the last 24 hours.<\/p>\n
<\/p>\n
Image source: Shutterstock, chart data from TradingView.com<\/p>\n","protected":false},"excerpt":{"rendered":"
Tether, the creator of the popular stablecoin USDT, has acquired a $100 million stake in Bitdeer Technologies Group, a US-based Bitcoin mining company owned by Chinese billionaire Jihan Wu, marking a significant move. This deal also includes an option for Tether to buy an additional $50 million worth of shares within the next year, further […]<\/p>\n","protected":false},"author":1,"featured_media":12916,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Tether's Huge Step Into Bitcoin Mining Through $100 Million Investment in a Company - Bitrabo","description":"Tether, the creator of the popular stablecoin USDT, has acquired a $100 million stake in Bitdeer Technologies Group, a US-based Bitcoin mining company owned by"},"footnotes":""},"categories":[316],"tags":[448,1757,951,626,561,677,1110,613],"class_list":["post-12915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-bitcoin","tag-firm","tag-investment","tag-major","tag-million","tag-mining","tag-move","tag-tether"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/12915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=12915"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/12915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/12916"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=12915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=12915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=12915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}