As a researcher with a background in finance and experience in following the digital asset sector, I find this development between Bitdeer and Tether intriguing. The $150 million investment from Tether into Bitdeer signifies a significant move by the stablecoin issuer into the Bitcoin mining industry.
Bitdeer, a Nasdaq-listed company specializing in Bitcoin (BTC) mining solutions, has reached an agreement with Tether for the purchase of approximately $100 million in Bitdeer shares. This deal also includes an option for Tether to acquire an additional $50 million worth of equity at a later date.
According to a recent press release, the deal consists of selling 18,587,360 Class A common shares privately, along with an option to buy an extra 5 million shares at a price of $10.00 per share. This arrangement was formally concluded on Thursday.
Linghui Kong, the top business executive at Bitdeer, announced that a prospective $150 million investment from Tether is set to speed up the expansion plans of the Bitcoin mining company and enhance its global presence. This injection of funds positions Bitdeer as a trailblazer in the eco-friendly Bitcoin mining sector.
“This significant financial commitment underscores our belief in our strategic direction and the robustness of our far-reaching business network.”
Based on Bitdeer’s website information, the company operates six mining data centers globally, collectively managing a hashrate of 22 exahashes per second (EH/s).
As a researcher studying the Bitcoin mining industry, I would describe Bitdeer as one of the most robust and self-sufficient operators in this sector. The former technology chief at Tether and current CEO of the stablecoin issuer made this observation.
“Bitdeer’s established success and elite leadership team aligns beautifully with Tether’s future goals. We look forward to a deep partnership with Bitdeer in crucial infrastructure sectors.”
According to the press announcement I’ve reviewed, the funds earmarked for use will primarily go toward expanding our data center infrastructure on a global scale. Additionally, there are plans in place for developing advanced Application-Specific Integrated Circuit (ASIC) mining chips.
According to Yahoo Finance’s data, Bitdeer’s shares experienced a significant increase of over 10% during pre-market trading, reaching a price of $6.44. This surge signifies the considerable influence of the digital asset sector on conventional finance markets.
As a financial analyst, I’d rephrase it this way: I’ve also come across the news that Cantor Fitzgerald & Co., an American financial services firm, serves as the placement agent for Tether. Notably, their CEO, Howard Lutnick, shared with Bloomberg TV that Tether “has the funds they claim to possess.”
Tether Expands into Bitcoin Mining
Tether, a leading financial tech firm, has disclosed investing approximately $500 million over the past six months into the Bitcoin mining industry. In an interview held at the Paris Blockchain Week in early April for DLNews, Ardoino revealed that these funds have been utilized to establish mining operations and energy infrastructure in Uruguay, Paraguay, and El Salvador, marking it as the world’s first country to recognize Bitcoin as legal tender.
As a crypto investor, I’d rephrase it like this: The stablecoin issuer is committed to constructing renewable energy sources, starting with solar and wind power, and eventually transitioning towards geothermal energy. Last November, Tether made headlines by disclosing its intention to venture into the Bitcoin mining sector.
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2024-05-31 18:33