Tether Acquires $100 Million Stake in Jihan Wu’s BTC Mining Firm Bitdeer

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Key Takeaways

  • Private placement includes 18,587,360 Class A ordinary shares and a warrant to purchase up to 5,000,000 additional shares at $10.00 per share.
  • It’ll  be used to fund an expansion of Bitdeer’s data center operations, development of ASIC-based crypto mining equipment 

USDT Stablecoin issuer Tether Holdings Ltd. has acquired a $100 million stake in Bitdeer Technologies Group, the US-listed Bitcoin mining firm of Chinese billionaire Jihan Wu.

As per the official announcement, the private placement includes 18,587,360 Class A ordinary shares and a warrant to purchase up to 5,000,000 additional shares at $10.00 per share.

The acquisition deal will be used to fund an expansion of Bitdeer’s data center operations, development of ASIC-based crypto mining equipment as well as other general corporate purposes. 

The press release adds that on May 30, the private placement transaction raised $100 million in gross proceeds from the share issuance, with an additional $50 million possible if the warrant is fully exercised.

Commenting on the acquisition, Bitdeer chief business officer Linghui Kong stated:

“With Tether’s support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining. This partnership marks a significant milestone for Bitdeer, and we look forward to achieving great things together.”

Tether CEO Paolo Ardoino stated that Bitdeer’s proven track record and world-class management team aligns perfectly with Tether’s long-term strategic vision.“We anticipate close collaboration with Bitdeer across several key infrastructure areas moving forward.”

This development comes a month after Tether split into four divisions with one of them being power. The power vertical is focused on becoming the umbrella for investments in Bitcoin mining.

Earlier this month, Tether laid out plans to allocate a part of its profits to BTC investments, including regular purchases of BTC and funding infrastructure. In 2022, Tether invested in BTC mining operations in Uruguay and a payment processor in Georgia.

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Saniya Raahath
Saniya Raahath

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