Bitdeer, the cryptocurrency mining company founded by Jihan Wu, is raising new funds from Tether, the operator of the largest stablecoin in the world. According to an official announcement on May 31, Tether has entered into a subscription agreement with Bitdeer to purchase up to $150 million worth of its shares in a private placement.
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. On May 30, the private placement transaction generated $100 million in gross proceeds from the share issuance, with the potential to raise an additional $50 million if the warrant is fully exercised.
With the fresh capital, Bitdeer plans to fund its data center expansion, develop an application-specific integrated circuit (ASIC)-based mining rig, and other purposes.
Established in 2018, Bitdeer is one of the largest cryptocurrency mining companies globally, originally spun off from Chinese mining machine maker Bitmain. The company specializes in proprietary and host mining, providing infrastructure and facilities to mining clients. Bitdeer’s vertically integrated business model gives it full control over the production, distribution, and sales of its products.
Bitdeer’s chief business officer, Linghui Kong, expressed excitement about Tether’s investment, stating that it will accelerate their growth and solidify their position in sustainable and efficient Bitcoin mining. Tether CEO Paolo Ardoino praised Bitdeer for its cutting-edge technologies and robust research and development efforts, aligning with Tether’s long-term strategic vision.
In April 2023, Bitdeer went public on Nasdaq through a special purpose acquisition company (SPAC) merger with Blue Safari Group Acquisition. This move came after Jihan Wu assumed the role of CEO at Bitdeer in March.
The investment from Tether comes as Bitdeer continues to expand its operations and establish itself as a leader in the Bitcoin mining industry.