Bitdeer Technologies Group (NASDAQ: BTDR) experienced a notable surge in its shares following an equity move. As of the latest check during the current market session, BTDR stock surged by 15.46% to reach $6.72.
Tether Partnership And Private Placement Deal
With Tether International Limited, Bitdeer (BTDR) announced today that it has signed a subscription agreement for a private placement of 18,587,360 Class A ordinary shares, plus a warrant for the acquisition of up to 5,000,000 more shares at a price of $10.00 per share. This private placement concluded on May 30, 2024.
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Utilization Of Proceeds And Future Growth Prospects
With the goal of increasing its hash rate and solidifying its place as the top participant in the bitcoin mining market, Bitdeer intends to use the net proceeds from the private placement for a number of important initiatives, such as data center expansion, the development of ASIC-based mining rigs, and general corporate purposes.
The gross profits from the sale of the shares in this transaction was $100 million, and if the warrant is fully exercised, there might be an additional $50 million in proceeds. The warrant reflects share splits, dividends, and other comparable events and is subject to typical anti-dilution measures.
Furthermore, it is subject to weighted average anti-dilution protection concerning the issuance of ordinary shares or equivalents for consideration per share less than the initial exercise price of the warrant. Tether holds the discretion to exercise the warrant within 12 months after closing.
Bitdeer aims to utilize the net proceeds from this private placement to fuel its data center expansion, ASIC-based mining rig development, and for working capital and other general corporate purposes. The company is on track to expand its hash rate by approximately 3.4EH/s by the end of this year, and progress is steady with the manufacturing of their SEALMINER A1 rigs.
This private placement marks the entry of Tether as a significant investor in Bitdeer. The substantial investment signifies confidence in BTDR’s vision and the robustness of its global operations. Bitdeer’s proven track record and world-class management team are in perfect alignment with Tether’s long-term strategic vision.
