Bitdeer, the cryptocurrency mining company founded by Jihan Wu, is raising capital from Tether, the operator of the world’s largest stablecoin. Tether has entered into a subscription agreement to purchase up to $150 million worth of Bitdeer shares in a private placement. The private placement includes Class A ordinary shares and a warrant to purchase additional shares. The initial transaction generated $100 million in gross proceeds, with the potential to raise an additional $50 million. The funds will be used for data center expansion, ASIC-based mining rig development, and other purposes.
Established in 2018, Bitdeer is a major player in the cryptocurrency mining industry, specializing in proprietary and host mining services. The company has a vertically integrated business model, giving it full control over the production and distribution of its products. Bitdeer’s chief business officer, Linghui Kong, expressed excitement about the partnership with Tether, stating that it will accelerate their growth and leadership in sustainable Bitcoin mining.
According to Tether CEO Paolo Ardoino, Bitdeer is a strong player in the Bitcoin mining industry, thanks to its advanced technologies and research and development efforts. Ardoino highlighted the alignment between Bitdeer’s track record and Tether’s strategic vision, anticipating close collaboration in key infrastructure areas.
Bitdeer went public on Nasdaq in April 2023 through a SPAC merger with Blue Safari Group Acquisition. Jihan Wu, the CEO of Bitmain, took on the role of CEO at Bitdeer in March. Wu founded Bitdeer in 2020 after leaving Bitmain, the mining chip manufacturer he co-founded in 2013.