Bitcoin

Impact

<p>The post <a href="https://coinpedia.org/news/tether-purchases-100m-of-bitdeer-shares-eyes-additional-50m/" rel="noopener noreferrer nofollow">Tether Purchases $100M of Bitdeer Shares, Eyes Additional $50M</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>In an official <a href="https://ir.bitdeer.com/news-releases/news-release-details/bitdeer-announces-150-million-private-placement-financing" rel="noopener noreferrer nofollow">announcement</a>, Tether, the company behind the world’s largest stablecoin, USDT, has agreed to purchase up to $150 million worth of shares in the bitcoin mining company Bitdeer. This significant investment highlights Tether’s growing interest in the bitcoin mining sector and its strategic moves to diversify and strengthen its presence in the broader cryptocurrency economy. Bitdeer’s stock (BTDR) is up over 13% intraday, showing market approval of Tether’s investment.</p>
<h2 class="wp-block-heading" id="h-investment-breakdown"><strong>Investment Breakdown</strong></h2>
<p>Recently Bitdeer has secured a subscription agreement for the private placement of 18,587,360 Class A ordinary shares, generating $100 million in proceeds. While, the agreement also includes a warrant for Tether to purchase an additional 5 million shares at $10 each, potentially adding $50 million to the investment. Hence, the funds will be used to expand Bitdeer’s data centres and develop new ASIC-based mining rigs for efficient Bitcoin mining operations.</p>
<h2 class="wp-block-heading" id="h-impact-on-bitdeer"><strong>Impact on Bitdeer</strong></h2>
<p>Following the news, Bitdeer’s shares saw a positive reaction in the market, jumping over 4% to $6.08 in pre-market trading. This surge reflects investor confidence in the company’s growth potential and the positive impact of the substantial funding from Tether. At present, Bitdeer shares are traded between $6 and $7.</p>
<h2 class="wp-block-heading" id="h-tether-s-btc-mining-call"><strong>Tether’s BTC Mining Call</strong></h2>
<p>This move shows their commitment to supporting the crypto economy and a bullish interest in BTC mining. By backing BTC mining, Tether aims to diversify its investments and improve the reliability of its USDT token. It’s part of their strategy to promote blockchain technology, like the one offered by Bitdeer.&nbsp;</p>
<h2 class="wp-block-heading" id="h-expansion-plans-and-market-reaction"><strong>Expansion Plans and Market Reaction</strong></h2>
<p>In the meanwhile, Bitdeer also plans to use the new capital for expanding data centers and developing advanced mining rigs, which are crucial steps in enhancing its mining capacity and efficiency. Tether CEO Paolo Ardoino <a href="https://ir.bitdeer.com/news-releases/news-release-details/bitdeer-announces-150-million-private-placement-financing" rel="noopener noreferrer nofollow">said </a>that Bitdeer is a leading player in Bitcoin mining. He praises their advanced tech and strong focus on research and development in the industry. By investing in state-of-the-art infrastructure, Bitdeer aims to maintain a competitive edge in the highly dynamic and resource-intensive bitcoin mining industry.&nbsp;</p>
<h2 class="wp-block-heading" id="h-conclusion"><strong>Conclusion</strong></h2>
<p>Overall, Tether’s investment in Bitdeer is a win-win. Bitdeer gets funds to grow, and Tether deepens its ties to Bitcoin’s core. This partnership showcases how crypto leaders team up to push the industry forward.</p>

Tether Purchases $100M of Bitdeer Shares, Eyes Additional $50M

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