Tether Enters $150M Deal with Crypto Miner Bitdeer

On Thursday, stablecoin issuer Tether entered into a deal with Bitdeer, a leading Bitcoin mining and AI compute firm, buying $100M in shares of the company outright..

What's the scoop?

• Additional Warrant: Beyond Bitdeer’s initial sale of $100M, the deal also includes a warrant for Tether to buy up to 5 million more shares at $10 per share, potentially raising another $50M for Bitdeer.
• Use of Funds: The funds raised from selling the shares will be used for data center expansion, development of ASIC-based mining, and general corporate purposes, the company says.

Bankless Take:

Bitcoin mining has gotten drastically more competitive and less profitable since the April halving. As a result, many companies like Core Scientific, Terawulf, and BitDigital have diversified into being AI cloud compute providers as well.

While Bitdeer notably has been labeled the firm with the “lowest all-in cost per coin,” this backdrop provides extra color to this recent sale, demonstrating the pressure on mining firms to stay competitive and build the most efficient infrastructure possible in order to be profitable, as is the case with Bitdeer’s development of their SEAL01 mining chip.