Tether buys 25% of one of the largest Bitcoin mining companies in the world

In a significant strategic move, Tether, issuer of the USDT stablecoin, announced the acquisition of a 25% stake in Bitdeer, one of the leading Bitcoin miners globally. The information was confirmed by a recent filing with the United States Securities and Exchange Commission (SEC).

With this acquisition, Tether Holdings Limited becomes Bitdeer’s second largest shareholder. The company is second only to Victory Courage Ltd., a company registered in the name of Jihan Wu, CEO of Bitdeer. Wu is also the co-founder and former CEO of ASIC maker Bitmain.

Currently, Bitdeer shares are priced at $7.15, reflecting a 2% increase since US markets opened. Furthermore, the Bitcoin mining company has seen an impressive 26% increase in its share price since the beginning of May.

This Thursday, 6th, Tether revealed that it now controls 23,587,360 shares of BTDR. This significant increase in Bitdeer’s holdings is the result of a private placement deal closed last week, which allowed Bitdeer to raise $100 million in funding.

The agreement also includes a warrant that allows Tether to acquire up to an additional 5,000,000 shares at $10.00 per share over the next year.

Tether acquires stake in mining company

Bitdeer plans to use the proceeds to expand its data centers, develop ASIC-based mining rigs, and for other general corporate purposes.

“With the support of Tether, we are ready to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining,” said Linghui Kong, Chief Business Officer at Bitdeer, in a press release last week. “This partnership marks a significant milestone for Bitdeer, and we look forward to achieving great things together.”

Bitdeer has come a long way to be listed on the Nasdaq, where it has been trading under the ticker BTDR since last year. The company went public through a merger with a special purpose acquisition company (SPAC), Blue Safari Group, after three delays.

In addition to the acquisition of Bitdeer, Tether also recently announced a $19 million investment in XREX Group, a company that is also supported by the Taiwan Government’s National Development Fund.

XREX intends to use the funding to develop USDT-based cross-border B2B payments and to launch XAU1, its own US dollar-backed stablecoin.

The startup’s Singapore entity, XREX Singapore, was recently granted a Master Payment Institution License by the Monetary Authority of Singapore, allowing it to operate as a payments processor in the country.