In a move signaling confidence in the future of Bitcoin mining, Tether, the issuer of the world’s largest stablecoin USDT, has invested in publicly traded miner Bitdeer. The deal, structured as a private placement, could reach $150 million.
Tether’s initial purchase comprises nearly 18.6 million Bitdeer shares, with an option to acquire an additional 5 million at $10 each. This news sent Bitdeer’s stock price soaring by over 6% on the day, reflecting investor optimism about the partnership.
The capital injection comes at a crucial time for miners following the recent Bitcoin halving, which cut block rewards in half. This event placed pressure on miners’ profitability, making access to capital critical for expansion.
According to Bitdeer, the proceeds from the share issuance will be used to fuel data center growth and develop next-generation ASIC mining rigs. This aligns with Bitdeer’s recent advancements in chip design, with the company testing its own Bitcoin mining chip for integration into its SEALMINER A1 machines.
The strategic partnership benefits both parties. Tether, flush with a record first-quarter profit of $4.52 billion, gains exposure to the mining sector through a well-established player. This investment coincides with Tether’s expansion beyond stablecoins, with its new Tether Power division focusing on sustainable Bitcoin mining operations.
Similarly, Bitdeer receives a significant financial boost to fuel its expansion plans, which include deploying its custom-designed mining rigs in Texas and Norway. Moreover, Bitdeer’s focus on carbon-neutral mining aligns with Tether’s vision for a sustainable future for Bitcoin.
“Bitdeer’s proven track record and leadership align perfectly with Tether’s long-term strategy,” said Tether CEO Paolo Ardoino. “We look forward to collaborating with Bitdeer across key infrastructure areas.”
Key Takeaway
This partnership between a leading stablecoin issuer and a major Bitcoin miner underscores the growing institutional interest in the cryptocurrency space. It also highlights the evolving landscape of mining, with both companies prioritizing innovation and sustainability for the future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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