Bitdeer receives private funding from Tether in the multi-million dollar range.
On Friday, Bitdeer Technologies Group, a Bitcoin miner, revealed that it has secured private placement funding of tens of millions of dollars from Tether, the issuer of USDT.
The Singaporean startup Bitdeer, established in 2020 by Jihan Wu, focuses on blockchain technology and HPC. The business offers end-to-end services for blockchain application data center design, construction, and management.
Bitdeer published a news release on May 31 announcing its subscription agreement with Tether to privately put 18,587,360 Class A ordinary shares and a warrant to buy up to 5,000,000 more shares for $10.00 each.
Bitdeer said that it might “offer an additional $50 million if the warrant is fully exercised,” adding to the $100 million in gross revenues from the share issue that followed Thursday’s conclusion of the private placement.
“Warrants are subject to anti-dilution provisions that reflect share splits, dividends, and other similar transactions. Additionally, there is weighted average anti-dilution protection for when ordinary shares or ordinary share equivalents are issued for consideration per share lower than the initial exercise price of the warrant,” according to the statement.
The company plans to utilize the private placement’s net proceeds to build its data center, develop mining rigs that employ application-specific integrated circuits (ASICs), and increase working capital. Tether has the option to exercise the warrant within 12 months of the closing.
Bitdeer is “one of the strongest” vertically integrated operators in the Bitcoin mining sector, according to Tether CEO Paolo Ardoino, who expressed excitement at the stablecoin issuer’s decision to collaborate with them.
