Quick Take:
- Tether acquires a significant stake in bitcoin mining company Bitdeer.
- The investment aims to bolster Tether’s position in sustainable mining operations.
Yello Paradisers! Is your crypto investment secure as Tether dives headfirst into the volatile world of Bitcoin mining with a major investment in Bitdeer?
Tether’s Bold Move in Bitcoin Mining
Tether, best known for its role in the stablecoin world, is making a calculated leap into the bitcoin mining sector through a notable investment in Bitdeer. As part of a private placement deal, Tether snagged nearly 18.6 million shares in Bitdeer and holds an option to snap up another 5 million shares at a tidy $10 each.
Mining After the Halving
This strategic placement comes at a crucial time for Bitdeer, especially post-Bitcoin halving—a recent event that saw mining rewards slice in half from 6.25 BTC to 3.125 BTC per block. Such times call for a sturdy financial buffer, and Tether’s injection of capital could be just what the miner needs to stay ahead.
A Financial Windfall
The deal has already generated a cool $100 million in gross proceeds, with a potential to top up another $50 million. Bitdeer plans to channel these funds into expanding data centers and developing ASIC-based mining rigs. Their ticker showed a lively uptick to $6.20, climbing 6.4% in morning trading—a sign that the market might be just as enthusiastic about this partnership.
Singapore to Texas: A Global Operation
Bitdeer, a Singapore-headquartered firm that went public on Nasdaq in April 2023, boasts a self-mining hash rate of 6.7 exahash per second as of the end of April. They’re not just about expanding physically but technologically too, with tests on a new bitcoin mining chip aimed to boost their so-called SEALMINER A1 machines.
Sustainable Ventures Ahead
Tether isn’t just injecting cash; it’s investing in its future. With a record-breaking net profit of $4.52 billion in Q1 alone, the stablecoin giant is diversifying, venturing into sustainable mining operations through its new division, Tether Power. Meanwhile, Bitdeer isn’t lagging in the green race either, with ambitious plans for carbon-neutral mining setups in exotic locations like Bhutan.
A Partnership with Promise
Tether’s CEO Paolo Ardoino summed up the mood with optimism, citing Bitdeer’s “proven track record and world-class management team” as key motivators for this investment. Tether’s strategy seems clear: intertwine with Bitdeer’s infrastructure to mine not just bitcoin, but also long-term growth and innovation in the eco-friendly tech space.
