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Tether Injects $150 Million in Bitcoin Hardware Maker, Bitdeer: Details

Fri, 31/05/2024 – 15:45

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Bitcoin hardware maker Bitdeer said it received $150 million in private funding from USDT stablecoin provider Tether. Bitdeer aims to use the fund to expand its data center, develop an ASIC-based mining rig, strengthen working capital for ongoing operations and other general corporate purposes.

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Bitdeer signs subscription deal with Tether

According to a press release, Bitdeer signed an investment agreement that involves the issuance of 18,587,360 Class A ordinary shares to Tether. Additionally, Tether acquired a warrant to purchase up to five million additional shares. Note that all shares are priced at $10 per share.

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The transaction was finalized on Thursday, generating $100 million in immediate proceeds from the share offering. The total investment could reach $150 million when the warrant becomes fully exercised.

The warrant comes with customary safeguards against dilution, including adjustments for share dividends, splits and similar actions. Additionally, it features weighted average anti-dilution protection for share issuances below the initial warrant exercise price. Tether reserves the right to exercise the warrant within a one-year window following the closing date.

Cantor Fitzgerald & Co. acted as the placement agent for this private transaction. However, the securities cannot be offered or sold within the United States without registration or an exemption. Bitdeer said it is committed to filing the necessary registration statements with the U.S. Securities and Exchange Commission (SEC) to facilitate the resale of the shares connected to the recent private placement.

Implications for Tether

With this investment, Tether solidifies itself as a leading player in the stablecoin ecosystem. It also highlights its commitment to innovation and expansion within the blockchain and high-performance computing sectors.

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The investment comes at the right time for Tether considering recent rumors that its stablecoin USDT was being delisted from Kraken exchange. While the rumors have since been denied by Kraken, the new funding positions Tether for further developments.

According to Coingecko’s data, USDT is currently trading at $0.9977, with a market cap of $111 billion, and a 24-hour trading volume of $38.8 billion.

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