Bitdeer (NASDAQ: BTDR) Receives $100M Investment From Stablecoin Leader Tether International Limited
Detroit, Michigan
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June 07, 2024 08:25 AM Eastern Daylight Time
By Gerelyn Terzo, Benzinga
Bitdeer Technologies Group (NASDAQ: BTDR), a Bitcoin mining and AI cloud solutions company led by industry pioneer Jihan Wu, has received a potentially game-changing capital injection from one of the blockchain industry’s earliest stablecoin projects.
Tether International Limited, a stablecoin backed by fiat currencies including the dollar, has purchased a $100 million position in Bitdeer. (Stablecoins are digital assets that are pegged or tied to more stable instruments, like the U.S. dollar, making them less volatile and more attractive for use cases like payments.)
The financing, which took the form of a private placement that closed in May, comprises 18,587,360 of Bitdeer’s Class A ordinary shares and a warrant to purchase up to 5,000,000 more at $10.00 per share. Cantor Fitzgerald served as the placement agent for the deal. In addition to the $100 million Bitdeer already received from the share issuance, the company could potentially see another $50 million if the warrant, which is exercisable at Tether’s discretion for 12 months, is fully exercised.
While Tether’s percentage equity stake in Bitdeer remains unclear, investors cheered the development, sending BTDR shares nearly 7% higher in response. Bitdeer Chief Business Officer Linghui Kong welcomed Tether as a “significant investor” in the company, saying:
“This substantial investment demonstrates confidence in our vision and the strength of our extensive global operations. With Tether's support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining.”
Tether CEO Paolo Ardoino expressed his delight to be partnering with Bitdeer, as it catapults his company closer to its Bitcoin mining aspirations. Tether has reportedly earmarked $500 million in preparation for its own Bitcoin mining operations, having broken ground on the development of facilities in Uruguay, Paraguay and El Salvador.
“We regard Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, differentiated by its cutting-edge technologies, and a robust R&D organization,” he said.
Bitdeer plans to direct the proceeds from the capital injection, which closed on May 30, toward powering its aggressive data center expansion and advancing the development of its ASIC-based Bitcoin mining rigsin a post-Bitcoin-halving environment, which might typically ushers in a bull market for Bitcoin.
ASICs – or application-specific integrated circuits – are chips that are specifically made for Bitcoin mining as opposed to CPUs and GPUs, whose design is more general in nature. Bitdeer’s Wu has been instrumental in ASIC miner innovation, leading to higher performance and greater efficiency in the Bitcoin mining process.
Bitdeer Strategically Positioning Itself For Next Bitcoin Mining Wave
Bitcoin mining is the process by which the Bitcoin blockchain is secured and new bitcoins are created. The process mimics that of physically mining for resources like gold from the ground, explaining how it earned its name. With the Bitcoin price hovering near $70,000, the next wave of Bitcoin mining is starting to ramp up as obsolete and inefficient equipment is replaced with the latest technology.
As one of the biggest publicly traded Bitcoin miners on the planet, Bitdeer boasts six Bitcoin mining facilities globally, including U.S. facilities in the states of Washington, Tennessee and Texas. Bitdeer was on track to begin construction of its 221MW data center in Ohio in April. The company is also in the midst of a 175MW expansion at its Tydal, Norway, immersion cooling data center, the construction of which is expected to be completed by mid-2025. Additionally, Bitdeer is expanding its operations in Bhutan, where it’s focused on the development of greenfield operations, including carbon-free digital asset mining.
Considering the massive amounts of computing power involved in mining Bitcoin, Bitdeer is dedicated to renewable, carbon-free and stable energy sources – setting an example for other mining companies to emulate.
The financing from Tether marks the beginning of what the management teams expect will become a close collaboration across multiple key infrastructure areas for the foreseeable future. Investors who are bullish on the future of sustainable Bitcoin mining might want to keep an eye on the leaders in this industry.
Featured photo by Randgruppe on Pixabay.
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