- Bitdeer secures $100 million from Tether, with potential for $50 million more.
- Collaboration highlights Bitdeer’s leadership in efficient bitcoin mining.
Leading blockchain and high-performance computing company Bitdeer Technologies Group has disclosed a significant investment deal with Tether International Limited.
This agreement calls for the private placement of 18,587,360 Class A ordinary shares, together with a warrant good for up to 5,000,000 further shares at $10.00 each. May 30, 2024, saw the closure of this important deal.
We are thrilled to announce that Tether International Limited has made a private placement financing of up to US$150 million in Bitdeer. This strategic investment will power our data center expansion and advance the development of our ASIC-based mining rigs.
Read the full press… pic.twitter.com/6jcC9In2Zb
— Bitdeer (@BitdeerOfficial) May 31, 2024
Bitdeer Secures $100M from Tether
With the potential for an extra $50 million if Tether fully exercises its warrant, the transaction has brought in $100 million in gross proceeds for Bitdeer. Subject to usual anti-dilution clauses, Tether has a year from the closing to use the warrant at its discretion.
Bitdeer plans to use these monies to build ASIC-based mining machines, expand its data centers, and pay for working capital and other business requirements.
The investment from Tether excited Bitdeer’s Chief Business Officer, Linghui Kong. He underlined that this significant funding shows faith in Bitdeer’s mission and the strength of its international activities.
Kong stressed that Bitdeer is well-positioned to maintain its leadership in efficient and sustainable bitcoin mining and to expand quickly with Tether’s backing. This collaboration, in his words, is a major Bitdeer milestone.
Tether’s Commitment
The CEO of Tether, Paolo Ardoino, shared the same idea of growth and cooperation. He acknowledged Bitdeer as one of the leading companies in vertically integrated Bitcoin mining due to its cutting-edge technology and sizable R&D capabilities.
Also, Ardoino pointed out that Bitdeer’s stellar management team and track record are exactly in line with Tether’s long-term strategic goals. His close cooperation in a number of important infrastructure domains excites him.
Legal and Placement Details
The placement agent for this private placement was Cantor Fitzgerald & Co. The securities under issue are not registered under the Securities Act of 1933 or any state securities laws; hence, they cannot be offered or sold in the US without the appropriate registration or exemption.
To enable the sale of ordinary shares, including those that would be issued upon the exercise of the warrant, Bitdeer has pledged to file the required registration statements with the U.S. Securities and Exchange Commission.
Relatedly, a prior ETHNews report described a partnership between Tether and Chainalysis to create customized solutions for tracking secondary market transactions.