Tether investing up to $150M in crypto mining firm Bitdeer

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As a seasoned crypto investor with a keen interest in the industry’s latest developments, I view Tether’s investment in Bitdeer as a strategic move that underscores its commitment to the broader crypto economy. This announcement comes at an opportune time when the market is showing renewed optimism following months of bearish sentiment.

Last Friday, Tether disclosed a private deal with Bitdeer, allowing them to purchase up to 150 million dollars’ worth of shares in a private offering.

As a crypto investor, I’d interpret it this way: In the press release, it was disclosed that the agreement encompasses the allocation of 18,587,360 Class A ordinary shares for my investment, alongside an option to acquire an extra 5 million shares at a price of $10.00 per share. At present, the market value of Bitdeer shares hovers around the range of $6 to $7.

On Thursdays, the private deal brought in $100 million in total funds through the sale of shares. There’s also a potential for an extra $50 million if all warrants are used.

In a recent press statement, Paolo Ardoino, CEO of Tether, expressed his viewpoint on Bitdeer as a leading vertically integrated player in the Bitcoin mining sector. He highlighted Bitdeer’s advanced technologies and robust R&D team as distinguishing factors. The success and skilled leadership of Bitdeer align with Tether’s strategic objectives for the future. We look forward to fostering a close partnership with Bitdeer in essential infrastructure domains.

At present, Bitdeer’s stock (BTDR) has experienced a rise of more than 13% during intraday trading, signifying a favorable market reaction following Tether’s investment announcement.

Tether’s interest in BTC mining 

Tether, the creator of the leading stablecoin USDT, has taken a major stride with this investment, signaling its intent to back Bitcoin (BTC) mining. This action underscores Tether’s broader commitment to fostering growth in the cryptocurrency sector. By investing in Bitcoin mining, Tether plays a pivotal role in ensuring the stability of the crypto economy.

“This investment decision aligns with Tether’s overarching plan to expand its portfolio and strengthen the security and dependability of its USDT token by putting resources into cutting-edge blockchain technology, such as that offered by Bitdeer.”

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2024-05-31 17:06