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Bitcoin

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In a significant development, Tether, the issuer of the widely used stablecoin <a href="https://bitcoinist.com/tether-chinese-authorities-uncover-usdt-operation/" target="_blank" rel="noopener ">USDT</a>, has acquired a $100 million stake in Bitdeer Technologies Group, a US-listed Bitcoin miner owned by Chinese billionaire Jihan Wu.&nbsp; 
Notably, the deal includes an option for Tether to purchase an additional $50 million shares within a year, strengthening its position in the Bitcoin mining sector. 
<h2 id="tether-s-multi-million-dollar-stake-in-bitdeer">Tether’s Multi-Million Dollar Stake In Bitdeer</h2> 
<a href="https://www.bloomberg.com/news/articles/2024-05-31/tether-acquires-100-million-stake-in-us-listed-bitcoin-miner-bitdeer" target="_blank" rel="noopener nofollow">According </a>to Bloomberg, the subscription agreement between Tether and Bitdeer involved a private placement of 18.6 million Class A ordinary shares, generating $100 million in gross proceeds.&nbsp; 
Additionally, a warrant allows Tether to acquire up to five million additional shares at $10 per share. The private placement concluded on Thursday, with Cantor Fitzgerald &amp; Co. acting as the placement agent. 
Bitdeer stated that the funds from the agreement will support the expansion of its data center operations, the development of application-specific integrated circuit (ASIC) based<a href="https://bitcoinist.com/kraken-considers-delisting-tethers-usdt-stablecoin/" target="_blank" rel="noopener "> crypto mining </a>equipment, and other general corporate purposes. However, details regarding the percentage of Bitdeer held by Tether under the agreement were not disclosed.&nbsp; 
This agreement represents a significant step for Tether in its goal to become a major player in Bitcoin mining. Last year, the company began constructing its own mining facilities in Uruguay, Paraguay, and El Salvador, pledging to invest $500 million within six months.&nbsp; 
<h2 id="bitdeer-s-market-rebound">Bitdeer’s Market Rebound</h2> 
Bitdeer, headquartered in Singapore, is among the largest publicly-listed crypto miners in the United States, with a <a href="https://bitcoinist.com/tether-latest-crackdown-5-2-million-frozen-phishing/" target="_blank" rel="noopener ">market capitalization</a> of approximately $670 million. The company operates data centers in the United States, Norway, and Bhutan.&nbsp; 
Following the news of the agreement, Bitdeer’s shares, which had declined by over 40% this year, rose by around 6.5% to $6.20. 
Earlier this year, Bitdeer was reportedly in discussions with private credit firms to secure approximately $100 million in financing. Whether these discussions will continue following Tether’s <a href="https://bitcoinist.com/tether-splits-into-four-divisions/" target="_blank" rel="noopener ">capital injection</a> into the company remains unclear. 
Bitcoin mining involves the operation of power-intensive computers that secure the blockchain and earn new tokens as a reward. In April, the rewards were halved as part of a programmed network upgrade known as “The Halving,” which occurs every four years. This change effectively reduced the profitability of Bitcoin mining by approximately half. 
In contrast, BTC’s price hit a record high of $73,700 in March, driven by optimism surrounding the launch of spot Bitcoin <a href="https://bitcoinist.com/spot-xrp-cardano-solana-etf-inevitable-ripple-ceo/" target="_blank" rel="noopener ">exchange-traded funds </a>(ETFs) in the United States. As of this writing, the largest cryptocurrency is trading at $67,150, down more than 3% in the past 24 hours.&nbsp; 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/NcjOlQ4V/" alt="Tether" width="1815" height="858"> 
Featured image from Shutterstock, chart from TradingView.com

Tether Makes Major Move Into Bitcoin Mining With $100 Million Investment In This Firm

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