Bitdeer and Tether have entered into a subscription agreement. The USDT stablecoin issuer has agreed to buy up to $150 million worth of shares of the Bitcoin mining company.
According to the announcement, the transaction involving the issuance of 18,587,360 Class A ordinary shares generated $100 million in gross proceeds. The agreement provides Tether a warrant to buy another 5 million shares, at $10 each. Thus, if fully exercised, the deal will sum up to the aforementioned $150 million.
A month back, Tether unveiled its plan to re-organize into four new divisions: Tether Data, Tether Finance, Tether Power, and Tether Education. The third division, i.e. Power, caters to the company's investments in Bitcoin mining.
The funds from the proceeds will be diverted by Bitdeer towards its data center expansion and ASIC-based mining rig development. Alongside, it will also be used as working capital to accommodate other general corporate expenses.
April marked a month of “stable operations” for Bitdeer. The company mined 265 Bitcoins in total. This marked a 13.7% rise from the same period last year and a decline of 9.9% from March 2024. This MoM dip came on the heels of the latest Bitcoin halving event which took place in mid-April.
Commenting on the latest development, Linghui Kong, Chief Business Officer of Bitdeer said,
“With Tether's support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining. This partnership marks a significant milestone for Bitdeer, and we look forward to achieving great things together.”
Bitdeer shares opened in green on Friday. Within minutes it climbed up by 11%. At press time, BTDR shares were seen exchanging hands around $6.5.
