Tether, the company behind the famous stablecoin USDT has bought a $100 million share in Bitdeer Technologies group. Bitdeer is a BTC mining industry listed in the US and belongs to Chinese billionaire Jihan Wu.
To solidify its position in the BTC mining industry, the agreement offers Tether to have an extra $50 shares within a year.
Tether Invests Millions in Bitdeer
Bloomberg stated that Tether and Bitdeer made a deal. According to that agreement Tether bought 18.6 billion Class A ordinary shares from Bitdeer, making $100 million in total. Also, it allowed Tether to buy more shares each at $10. Cantor Fitzgerald & Co. helped with the private sale that ended on Thursday.
The money from the agreement will help Bitdeer to develop application-specific integrated circuits (ASIC) based on crypto mining instruments, data center operations, and other general corporate goals. Because of this deal, they didn’t tell how much Bitdeer Tether owns now.
This deal is a great opportunity for Tether to become a major Bitcoin mining player. Tether started constructing its centers of mining in Paraguay, Uruguay, and EI Salvador. In next six months, it’s planning to invest $500 million.
Bitdeer Bounces Back in the Market
Bitdeer is based in Singapore listed on the US stock market and is one of the biggest crypto miners. This runs data centers in Norway, the US, and Bhutan with a worth of around $670 million.
Based on the news of a deal Bitdeer went up to 6.5% to $6.20 which had before fallen to more than 40% this year.
Bitdeer wants to have around $100 million in funds from private credit firms earlier this year. It is still unclear if these talks continue that Tether has put money into Bitdeer.
Bitcoin mining refers to the use of powerful computers that secure blockchain and as a reward get new tokens. Halving is a process that happens every four years in which the rewards are reduced to half in April. Because of Halving the profit of bitcoin mining also reduced to half.
Optimism surrounding the US debut of spot Bitcoin exchange-traded funds (ETFs) sent Bitcoin to an all-time high of $73,700 in March. It is currently trading at $67,150, down more than 3% within the past day.
