Tether Invests $150M In Bitdeer For Bitcoin Mining

Bitdeer, a manufacturer of Bitcoin hardware, said that Tether, a USDT stablecoin supplier, gave them $150 million in private investment. Bitdeer wants to use the money to build an ASIC-based mining rig, grow its data center, enhance working cash for current operations, and other broad business uses.

A press statement states that Bitdeer concluded an investment deal whereby Tether will get 18,587,360 Class A ordinary shares. Tether also obtained a warrant to buy maybe five million more shares. All shares are priced at $10 apiece, though.

The deal closed on Thursday, resulting in immediate profits of $100 million. When the warrant is fully used, the overall investment might reach $150 million.

Customary protections against dilution abound on the warrant, including changes for share dividends, splits, and like acts. It also has weighted average anti-dilution protection for share issuances less the starting warrant exercise price. Tether reserves the right to use the warrant within a one-year period from the closure date.

The placement agency for this private deal was Cantor Fitzgerald & Co. Still, the securities cannot be sold or offered inside the United States without registration or an exemption. Bitdeer stated it is dedicated to submitting the required registration statements with the U.S. Securities and Exchange Commission (SEC) to enable the sale of the shares linked to the recent private placement.

Tether guarantees itself as a major participant in the stablecoin scene with this investment. It also emphasizes its dedication to creativity, blockchain, and high-performance computer sector advancement.

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Given recent concerns that its stablecoin USDT was being delisted from the Kraken exchange, the investment seems timely for Tether. Although Kraken has subsequently refuted the reports, Tether, for additional development, has fresh funding sources.

With a market capitalization of $111 billion, USDT is presently trading at $0.9977, according to Coingecko’s data; 24-hour trading volume is $38.8 billion.