Jihan Wu’s cryptocurrency mining firm Bitdeer is raising new capital from Tether, the operator of the world’s largest stablecoin, the eponymous Tether (USDT).
Tether has entered into a subscription agreement with Bitdeer to purchase up to $150 million worth of its shares in a private placement, according to an official announcement on May 31.
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.
The announcement states that 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 fresh net proceeds, Bitdeer plans to fund its further data center expansion, development of an application-specific integrated circuit (ASIC)-based mining rig and other purposes.
Established in 2018, Bitdeer is one of the world’s largest cryptocurrency mining companies, specializing in both proprietary and host mining, as well as servicing infrastructure and facilities.
Bitdeer is known for its vertically integrated business model, meaning that the company has full control over the production of raw materials, assembly, distribution, and sales of its products.
“We are thrilled to welcome Tether as a significant investor in Bitdeer,” Bitdeer chief business officer Linghui Kong said, adding:
“With Tether's support, we are poised to accelerate our growth and continue our leadership in sustainable and efficient Bitcoin mining. This partnership marks a significant milestone for Bitdeer, and we look forward to achieving great things together.”
According to Tether CEO Paolo Ardoino, Bitdeer is one of the strongest vertically integrated operators in the Bitcoin mining industry due to its cutting-edge technologies and robust research and development efforts.
“Bitdeer’s proven track record and world-class management team are perfectly aligned with Tether’s long-term strategic vision,” Ardoino noted, stating:
“We anticipate close collaboration with Bitdeer across several key infrastructure areas moving forward.”