Tether has made a major announcement on Friday, revealing that it has reached a subscription agreement with Bitdeer to acquire shares worth up to $150 million in a private placement.
The agreement includes 18,587,360 Class A ordinary shares and a warrant to purchase an additional 5,000,000 shares at $10.00 per share, as stated in the press release. Currently, Bitdeer shares are trading in the range of $6 to $7 per share.
The private placement transaction conducted on Thursday 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.
In a statement, Paolo Ardoino, CEO of Tether, expressed his confidence in Bitdeer as a leading player in the Bitcoin mining industry, highlighting its innovative technologies and strong research and development capabilities. He emphasized the alignment between Bitdeer’s track record and management team with Tether’s long-term strategic goals, hinting at future collaborations in key infrastructure areas.
Following the news, Bitdeer’s stock (BTDR) saw a surge of over 13% in intraday trading, reflecting the market’s positive reaction to Tether’s investment.
This move signifies a significant shift for Tether, the creator of the largest stablecoin, USDT, as it demonstrates a willingness to venture into Bitcoin mining and shows a broader commitment to advancing the crypto economy. By supporting Bitcoin mining, Tether plays a crucial role in securing the crypto ecosystem.
The decision to invest in Bitdeer aligns with Tether’s strategy of diversifying its investments and enhancing the stability and reliability of the USDT token by embracing blockchain technology, such as the solutions offered by Bitdeer.