The issuer of the largest stablecoin USDT, Tether is investing US$150 million in Bitdeer, Jihan Wu’s cryptocurrency mining company, as revealed in a statement released on May 31.
Bitdeer Technology Group has revealed the execution of a subscription agreement with Tether for the private placement of 18,587,360 Class A common shares and a warrant to purchase up to an additional 5,000,000 shares at $10.00 per share. The private placement closed on May 30, 2024.
“The transaction generated US$100 million in gross proceeds from the share issuance and could provide an additional US$50 million if the warrant is fully exercised. The warrant is subject to customary anti-dilution provisions reflecting dividends and stock splits or other similar transactions, and weighted average anti-dilution protection with respect to the issuance of shares of common stock or common stock equivalents for consideration per share less than initial exercise price of the warrant. The warrant may be exercised at Tether’s discretion within 12 months of closing,” the company explained.
According to Bitdeer’s statement, the company intends to use the net proceeds in financing the expansion of its data center, the development of ASIC-based mining rigs, and for working capital and other general corporate purposes.
“We are excited to welcome Tether as a significant investor in Bitdeer,” said Linghui Kong, Chief Business Officer at Bitdeer. “This substantial investment demonstrates confidence in our vision and the strength of our extensive global operations. With Tether’s support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient bitcoin mining. This partnership represents a significant milestone for Bitdeer and we look forward to achieving great things together.”
Paulo Ardoino, CEO of Tether, celebrated the partnership with Bitdeer. “We consider Bitdeer to be one of the strongest vertically integrated operators in the Bitcoin mining industry, differentiated by its cutting-edge technologies and robust R&D organization,” he said.
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Source: https://portalcripto.com.br/tether-anuncia-investimento-de-us-150-milhoes-em-empresa-de-mineracao-de-cripto/
