Key Points
- Tether has entered a subscription agreement with Bitdeer, intending to purchase up to $150 million worth of shares.
- This investment signifies Tether’s commitment to Bitcoin mining and the development of the crypto economy.
Tether, on Friday, revealed its plans to acquire a significant number of shares in Bitdeer. This is part of a subscription agreement that could see Tether purchasing up to $150 million worth of shares in a private placement.
Details of the Agreement
The deal comprises 18,587,360 Class A ordinary shares and an option to buy up to an additional 5,000,000 shares at a rate of $10.00 per share. Bitdeer’s shares are presently being traded between $6 and $7 per share.
The private placement transaction resulted in $100 million in gross proceeds from the issuance of shares on Thursday. There’s also an opportunity to raise an extra $50 million if the option is fully utilized.
Tether’s Interest in Bitcoin Mining
Tether’s CEO, Paolo Ardoino, expressed admiration for Bitdeer, describing it as one of the most robust vertically integrated operators in the Bitcoin mining industry. The company’s advanced technologies, robust R&D organization, and proven track record align perfectly with Tether’s long-term strategic vision.
This investment from Tether, the creator of the world’s largest stablecoin, USDT, is a significant step. It demonstrates Tether’s readiness to invest in Bitcoin mining, reflecting its broader interest in growing the crypto economy. Tether is reinforcing the stability and reliability of its USDT token by investing in blockchain technology, such as that provided by Bitdeer.
Tether’s investment has been positively received by the market, with Bitdeer’s stock (BTDR) rising over 13% in intraday trading at the time of writing.
