Tether, the operator of the world’s largest stablecoin, USDT, has announced a substantial investment in Jihan Wu’s cryptocurrency mining firm, Bitdeer. According to a statement on May 31, Tether has entered into a subscription agreement to purchase up to $150 million worth of Bitdeer shares in a private placement.

Details of the Investment

The private placement includes acquiring 18,587,360 Class A ordinary shares and a warrant to purchase up to 5,000,000 additional shares at $10.00 per share. As of May 30, the transaction has generated $100 million in gross proceeds, potentially raising an additional $50 million if the warrant is fully exercised.

Purpose and Plans for the Investment

Bitdeer intends to use the fresh net proceeds to expand its data centers, develop application-specific integrated circuit (ASIC) mining rigs, and other strategic purposes. Linghui Kong, Bitdeer’s Chief Business Officer, expressed excitement about the partnership, stating, “We are thrilled to welcome Tether as a significant investor in Bitdeer. With Tether’s support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient bitcoin mining.”

Strategic Collaboration and Future Prospects

Tether’s CEO, Paolo Ardoino, highlighted Bitdeer’s strong position in the Bitcoin mining industry, citing its cutting-edge technologies and robust research and development efforts. “Bitdeer’s proven track record and world-class management team perfectly align with Tether’s long-term strategic vision,” Ardoino noted. He added that Tether anticipates close collaboration with Bitdeer across several key infrastructure areas.

This investment marks a significant milestone for Bitdeer, reinforcing its position in the market and supporting its expansion efforts. The partnership will foster advancements in sustainable and efficient Bitcoin mining, aligning with both companies’ strategic goals.