Bitdeer Acquires FreeChain in 20M Share Deal to Boost ASIC

As a researcher with a background in technology and mergers and acquisitions, I find Bitdeer Technologies Group’s acquisition of FreeChain Inc. an intriguing development. With my experience in assessing the potential impact of M&A deals on companies, I am particularly interested in this transaction given the complementary nature of the two businesses.

Bitdeer Technologies Group, a prominent player in the blockchain and advanced computing technology sector, has made public its purchase of FreeChain Inc., a specialized firm focused on designing application-specific integrated circuits (ASICs) for cryptocurrencies.

As a researcher studying this transaction, I would describe it as follows: I have discovered that the acquisition of FreeChain involves the exchange of 20 million Class A ordinary shares of Bitdeer. These shares will be used to purchase all outstanding shares of FreeChain. However, not all of the issued Bitdeer shares will vest immediately. Instead, a portion of them will become available in equal installments over a period of five or seven years, subject to the specific terms and conditions outlined in the agreement.

Following the purchase, half of the allocated shares for specific vendors are restricted from being transferred for a six-month period. The other half is subject to a transfer restriction of twelve months post-closing. Bitdeer underwent an extensive ten-month investigation into FreeChain prior to the acquisition, examining aspects such as technology, engineering capabilities, and supply chain.

As a researcher, I’ve discovered that FreeChain’s chip designs are an excellent complement to Bitdeer’s, particularly for advanced semiconductor processes at 4nm and below. By joining forces with the ASIC design team in Singapore, the FreeChain team will significantly boost Bitdeer’s capacity and expedite its time to market. Together, we’re on the brink of releasing integrated products that showcase our combined technologies.

Linghui Kong, Bitdeer’s Chief Business Officer, shared that incorporating FreeChain’s technology would broaden and enhance Bitdeer’s current product offerings. It would also fuel the company’s future R&D for advanced ASIC solutions and optimize the efficiency of those technologies based on present capabilities.

As a crypto investor, I’m excited to share that Bitdeer Technologies Group has just announced a private sale agreement with Tether. According to the terms of this deal, concluded on May 30, 2024, Bitdeer will receive up to $150 million worth of Tether’s shares. Specifically, this involves the placement of 18,587,360 Class A ordinary shares, with an added bonus of a warrant that grants us the right to purchase an additional 5,000,000 shares at $10.00 each.

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2024-06-07 04:52