Blockchain and high-performance computing leader Bitdeer Technologies Group recently announced a significant financial move, marked by a partnership with Tether International Limited. On May 31, 2024, Bitdeer signed a subscription agreement resulting in the sale of 18,587,360 Class A ordinary shares and an additional 5,000,000 shares at $10.00 per share. This transaction, which finalized on May 30, 2024, brought in $100 million in gross proceeds, with the potential for an additional $50 million if Tether fully exercises its purchase rights.
Private Placement Financing
The private placement financing was strategically structured with anti-dilution provisions to safeguard against share dilution from dividends, splits, or similar transactions. This setup allows Tether the option to acquire more shares within the next 12 months after the closing. These precautions ensure financial flexibility for Bitdeer while maintaining the integrity of the investment.
Bitdeer plans to utilize the raised funds for various strategic purposes, such as expanding data center infrastructure, advancing ASIC-based mining machines, and fortifying general working capital. This injection of capital is poised to boost Bitdeer's operational capabilities and bolster its position in the competitive Bitcoin mining industry.
Implications of the Tether Partnership
Bitdeer's Chief Operating Officer, Linghui Kong, expressed enthusiasm regarding the partnership with Tether, marking it as a pivotal step for Bitdeer's growth. Kong highlighted Tether's investment as a vote of confidence in Bitdeer's vision and operational prowess. This collaboration is poised to accelerate Bitdeer's development and solidify its prominence in sustainable and efficient Bitcoin mining.
Tether's CEO, Paolo Ardoino, echoed these sentiments, recognizing Bitdeer as a vertically integrated operator with cutting-edge technology and a robust R&D foundation. Ardoino commended Bitdeer's track record and management team, aligning them well with Tether's long-term vision. This partnership signifies a close collaboration in critical infrastructure aspects, shaping a promising future for both entities.
