Tether Buys $100M Worth of Bitdeer Shares With Option to Purchase $50M More
Bitdeer generated $100 million in proceeds from the private placement, which could grow to $150 million if fully exercised.
Tether now has a unit specifically focused on investments in bitcoin mining.
Stablecoin company Tether has agreed to purchase up to $150 million worth of shares in bitcoin (BTC) miner Bitdeer (BTDR).
Bitdeer entered into a subscription agreement for the private placement of 18,587,360 Class A ordinary shares, generating $100 million in proceeds, according to an announcement on Friday.
The agreement also includes a warrant to purchase an additional 5 million shares at $10 apiece, which will provide an additional $50 million if fully exercised.
Bitdeer intends to use the proceeds to fund its data center expansion and ASIC-based mining rig development, the Singapore-based company said.
Shares of Bitdeer jumped over 4% to $6.08 in pre-market trading after the announcement.
Tether, the developer of the world’s largest stablecoin, USDT, recently split into four divisions to reflect its wider interest in developing the crypto economy. One of these four units is focused on investments in bitcoin mining.