Bitdeer Technologies Group BTDR, a leader in Bitcoin mining and AI cloud solutions, received a $100 million investment from Tether International Limited. This substantial capital injection positions Bitdeer for substantial growth in the Bitcoin mining sector.

Details of the Investment

The deal, finalized in May, involves Tether acquiring 18,587,360 of Bitdeer’s Class A ordinary shares and a warrant to purchase an additional 5,000,000 shares at $10.00 each. Cantor Fitzgerald facilitated this private placement, potentially bringing in another $50 million if Tether exercises its warrant within the next year.

Leadership Comments

Linghui Kong, Bitdeer's chief business officer, expressed enthusiasm about Tether's investment, stating: “This substantial investment demonstrates confidence in our vision and the strength of our extensive global operations. With Tether's support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining.”

Tether CEO Paolo Ardoino also shared his excitement about the partnership, noting Tether’s aim to enhance its Bitcoin mining activities: “We regard Bitdeer as one of the strongest vertically integrated operators in the Bitcoin mining industry, differentiated by its cutting-edge technologies, and a robust R&D organization.”

Future Plans and Expansion

Bitdeer plans to utilize the investment to expand its data center capabilities and advance the development of its ASIC-based Bitcoin mining rigs. These application-specific integrated circuits are designed to optimize Bitcoin mining, offering higher performance and efficiency compared to general-purpose processors.

The company, led by Jihan Wu, an innovator in ASIC technology, aims to capitalize on the anticipated bull market following the next Bitcoin halving. Bitdeer operates six mining facilities globally, including Washington, Tennessee and Texas locations, with ongoing expansions in Ohio, Norway and Bhutan focusing on carbon-free mining operations.

Industry Impact

The Tether investment signals a close collaboration between the two companies, potentially impacting the broader Bitcoin mining industry. Tether has allocated $500 million for its Bitcoin mining operations in Uruguay, Paraguay and El Salvador, furthering its commitment to the market.

Benzinga’s Future of Digital Assets

The partnership between Bitdeer and Tether will be a topic of interest at Benzinga’s Future of Digital Assets event on Nov. 19, 2024, at Convene at 225 Liberty St. in New York City. This gathering of digital asset innovators and institutional investors provides a platform for networking and deal-making and offers insights into the state and future of digital assets.

With 1,000 leaders in capital markets and over 4,000 one-on-one meetings, the event is a prime opportunity to connect with key players in the industry. Attendees will benefit from executive roundtables and speaker office hours, gaining exclusive access to industry leaders and their perspectives.

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