Coinspeaker Bitdeer Announces Up to $150M in Private Placement Financing

Bitdeer, a company listed on Nasdaq focused on providing Bitcoin (BTC) mining solutions, has secured a subscription agreement with Tether, which allows the stablecoin issuer to purchase around $100 million worth of Bitdeer shares with the option to add an additional $50 million worth of equity to its holding as well.

As per a press statement, the agreement involves “the private placement of 18,587,360 Class A ordinary shares and a warrant to purchase up to 5,000,000 additional shares at $10.00 per share”. Additionally, the agreement was finalized on Thursday.

Linghui Kong, the Chief Business Officer of Bitdeer, stated that the potential $150 million investment from Tether will allow the Bitcoin mining company to accelerate its growth and expand its global footprint, establishing it as a leader in the sustainable Bitcoin mining industry, adding:

“This substantial investment demonstrates confidence in our vision and the strength of our extensive global operations.”

According to the Bitdeer website, the company has six mining data centers around the world, and it currently generates a total hasrate of 22 EH/s under management.

Former Tether technology chief and now the chief executive of the stablecoin issuer described Bitdeer as “one of the strongest vertically integrated operators in the Bitcoin mining industry,” adding:

“Bitdeer’s proven track record and world-class management team are perfectly aligned with Tether’s long-term strategic vision. We anticipate close collaboration with Bitdeer across several key infrastructure areas moving forward.”

Notably, as per the press release, the funds will be used to expand its data centers around the world and towards the development of application-specific integrated circuit (ASIC) mining chips.

It is important to note that, as per the data from Yahoo Finance, during the pre-market trading, the shares of Bitdeer rose more than 10%, priced at $6.44. The movement of shares indicates the impact that the digital asset sector has on the traditional finance industry.

Further, Cantor Fitzgerald & Co., an American financial services firm, has been named as the placement agent. Recently, the firm’s CEO, Howard Lutnick, spoke to Bloomberg TV, stating that Tether has “the money they say they have.”

Tether Expands into Bitcoin Mining

Tether recently confirmed investing $500 million in six months in the Bitcoin mining sector, and in an interview with DLNews in early April at the Paris Blockchain Week, Ardoino stated that the funds have been used to create mining facilities and energy stations in Uruguay, Paraguay, along with El Salvador, the first country to adopt Bitcoin as legal tender.

The stablecoin issuer is focused on building renewable energy stations, including “solar and wind, and then moving towards geothermal”. In November last year, Tether confirmed for the first time that it would invest in the Bitcoin mining industry.

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Bitdeer Announces Up to $150M in Private Placement Financing