Tether, the issuer of the stablecoin USDT, has acquired a significant stake in Bitdeer Technologies Group, a US-listed Bitcoin mining company owned by Chinese billionaire Jihan Wu.
This deal includes an investment of $100 million, with an option to purchase additional shares worth $50 million over the next year.
Supporting the expansion of mining operations:
According to a statement issued by Bitdeer yesterday, Friday, the agreement includes a private offering of 18.6 million Class A common shares, achieving total proceeds of $100 million.
In addition, the agreement includes a clause that gives Tether the right to purchase up to five million additional shares at a price of $10 per share.
Tether's ambition to mine Bitcoin:
This investment represents a strategic step for Tether towards strengthening its presence in the Bitcoin mining space.
The company began building its own mining facilities in Uruguay, Paraguay and El Salvador last year, and plans to invest half a billion dollars within six months in the endeavor.
Bitdeer, headquartered in Singapore, is among the largest public cryptocurrency miners listed in the United States, with a market capitalization of about $670 million.
Although the value of its shares has fallen by more than 40% this year, Bitdeer shares saw a 6.5% increase to $6.20 after the investment was announced.
