Tether Increases Bitdeer Stake to 21%

Tether fully funded the acquisition using its working capital, without any debt financing.

Tether’s initial investment in Bitdeer dates back to May 2024, with a $100 million investment for 18.59 million shares and an option to buy an additional 5 million shares at $10 each.

Over the past year, Tether has recorded a historic profit of approximately $13 billion. To mitigate risks associated with holding reserves exclusively in U.S. dollars, the company has been actively diversifying its investments across various asset classes.

In addition to mining assets, Tether recently acquired a stake in Juventus FC. The company also made a bid to purchase a controlling stake in Adecoagro, one of Latin America’s largest agricultural producers.

However, the choice to invest in Bitdeer was deliberate. As a leading player in the mining industry, Bitdeer offers a reliable revenue stream, even amid the crypto market’s volatility.

What Is Crypto Mining and Why Is It Popular?

Mining is the process of generating new cryptocurrencies by using special computing power equipment. Miners solve complex mathematical problems, adding new valid blocks to the blockchain and ensuring network security and stability.

In recent years, mining has become increasingly popular among institutional investors and corporations. The key reason is that mining provides a stable revenue stream, making it less dependent on cryptocurrency price volatility.

Related: Solo Bitcoin Miner Defies the Odds, Banks $263K with Cheap Rig

Why Tether Invests in Bitdeer

Tether is the largest stablecoin issuer, backing USDT with U.S. dollars and Treasury bonds. However, given the ongoing regulatory pressure, the company aims to diversify the risks. Investing in physical assets like mining infrastructure helps reduce its reliance on the traditional financial system.

Moreover, by investing in Bitcoin mining, Tether gains direct access to the crypto industry’s infrastructure, allowing it to influence market dynamics from within.

Bitdeer, a Singapore-based mining powerhouse, operates global mining facilities and provides infrastructure for Bitcoin mining. With its shares publicly traded on Nasdaq, Bitdeer has become a highly attractive investment for institutional players.

You might also like: Bitcoin Mining: A Beginner’s Guide

Amid global economic uncertainty, many investors prefer companies with clear governance structures and strong financial stability. And Bitdeer fits these criteria.

Moreover, experts predict that the mining industry will continue to expand, driven by reduced regulatory risks and greater industry transparency. By investing in Bitdeer, Tether aims to secure long-term returns while reinforcing its position in the crypto market.