Bitdeer's Strategic Funding Boost from Tether

Bitdeer, a key Bitcoin hardware manufacturer, recently announced a substantial $150 million private funding injection from Tether, a prominent USDT stablecoin provider. This investment is earmarked to fuel Bitdeer's expansion efforts, with a focus on scaling its data center infrastructure, developing ASIC-based mining rigs, and fortifying operational liquidity for general business operations.

Notable Bitdeer-Tether Agreement

As per the latest press release by Bitdeer, the company has formalized an investment deal with Tether that involves offering 18,587,360 Class A ordinary shares to the stablecoin issuer. Additionally, Tether has secured a warrant permitting the acquisition of up to five million additional shares at a set price of $10 per share.

The completion of the transaction has yielded immediate proceeds of $100 million from the initial share issuance, potentially reaching a total of $150 million upon full execution of the warrant.

The warrant incorporates standard protective clauses to prevent dilution, including provisions for share dividends, splits, and anti-dilution safeguards for share allotments below the warrant exercise price. Tether retains the right to exercise the warrant within a one-year timeframe post the transaction's finalization.

Cantor Fitzgerald & Co. has acted as the placement agent for this private transaction, underscoring the legal constraints on trading the securities in the U.S. market without proper registration or exemptions. Bitdeer has affirmed its commitment to filing requisite registration statements with the U.S. Securities and Exchange Commission (SEC) to facilitate the resale of shares linked to the recent funding round.

Tether's Strengthened Position

This substantial investment from Tether cements its position as a prominent entity in the stablecoin domain, showcasing a strong dedication to pioneering advancements and growth in the blockchain and high-performance computing segments. The timing of this investment is pivotal for Tether, particularly in light of recent talks about the potential delisting of its USDT stablecoin on Kraken. Despite Kraken's subsequent denial of these rumors, the fresh influx of capital places Tether in a favorable stance for future endeavors.

According to Coingecko's statistics, the USDT stablecoin is currently trading at $0.9977, boasting a market cap of $111 billion and a substantial 24-hour trading volume of $38.8 billion.