Tether Boosts Bitdeer Stake to 21.4% in Bitcoin Mining Push

Tether, the issuer of the stablecoin USDT, has significantly increased its stake in Bitdeer Technologies Group, a prominent Bitcoin mining company. The investment has elevated Tether’s ownership of Bitdeer’s outstanding shares to over 20%, marking a strategic pivot towards the digital asset mining sector. This move underscores the growing convergence between stablecoin issuers and Bitcoin miners, as both entities seek to leverage their respective strengths to enhance operational efficiency and sustainability.

On October 2, a filing with the U.S. Securities and Exchange Commission revealed that Tether has become a major shareholder in Bitdeer through its subsidiaries, Tether International, SA de CV, and Tether Investments, SA de CV. The combined interests of these subsidiaries amount to 31,891,689 Class A ordinary shares, representing 21.4% of Bitdeer’s outstanding shares. This investment solidifies Tether’s position as a key investor in the Bitcoin mining firm, further diversifying its business interests beyond the stablecoin market.

Bitdeer, founded by Jihan Wu, aims to achieve vertical integration in the Bitcoin mining sector. The company is not only involved in mining operations but also in the production of its own mining chips and the management of its power sources. This integrated approach allows Bitdeer to optimize energy usage and enhance mining efficiency, positioning itself as a self-sustaining entity in the industry. The company’s recent announcement of the test results for its SEALMINER A3 chip, which reported performance below 10 J/TH in laboratory conditions, further exemplifies its commitment to technological advancement and energy optimization.

Tether’s investment in Bitdeer is part of a broader strategy to expand its involvement in the Bitcoin mining sector. The company has previously invested $100 million in Bitdeer through a private placement financing round, with an option to purchase an additional $50 million in shares. Tether’s CEO, Paolo Ardoino, expressed enthusiasm about collaborating with Bitdeer on critical infrastructure projects, highlighting the potential for mutual growth and innovation. Tether’s participation in El Salvador’s Volcano Energy mining project further demonstrates its commitment to the Bitcoin mining industry.

Linghui Kong, Chief Business Officer at Bitdeer, welcomed Tether’s support, stating that it would significantly accelerate the company’s growth and leadership position in sustainable and efficient Bitcoin mining. This strategic partnership is expected to drive advancements in both companies’ operations, leveraging Tether’s financial backing and Bitdeer’s technological expertise to create a more robust and efficient mining ecosystem.

This investment by Tether in Bitdeer reflects a broader trend in the cryptocurrency industry, where firms are increasingly exploring opportunities beyond their core focus on digital assets. By venturing into associated technology and energy sectors, these companies aim to shore up their finances and enhance their operational capabilities. This strategic shift is likely to foster innovation and growth in the Bitcoin mining sector, as well as in the broader cryptocurrency ecosystem.