Tether Expands Its Bitcoin Mining Footprint with Additional $32M Investment in Bitdeer

Stablecoin giant Tether has purchased an additional $32 million worth of shares in Bitcoin mining company Bitdeer this month, according to an SEC filing.

Stablecoin giant Tether has acquired an additional $32 million worth of shares in Bitcoin (BTC) mining company Bitdeer this month, according to a recent filing with the Securities and Exchange Commission (SEC).

This latest investment builds on Tether’s growing stake in Bitdeer. Last month, filings showed that Tether had increased its ownership to 21.4% of Bitdeer’s outstanding shares through its subsidiaries Tether International and Tether Investments.

The timing of Tether’s purchase coincides with a downturn in the Bitcoin mining sector. Nasdaq-listed Bitdeer (BTDR) has seen its share price drop to $7.62, representing a nearly 67% decrease year-to-date.

For context, Bitdeer is one of the largest Bitcoin miners, and its stock decline is a significant development. In comparison, MARA Holdings (NYSE:MARA), the largest miner by market capitalization, has experienced a 26% decline in share price this year. Riot Platforms (NASDAQ:RIOT) shares have fallen over 38% during the same period.

According to investment bank JP Morgan, March was the worst month on record for 14 top public Bitcoin mining companies. These firms collectively lost 25% of their market value, equivalent to about $6 billion.

The struggles facing miners stem from multiple factors. Bitcoin’s price has failed to maintain momentum after reaching an all-time high near $109,000 in January. The cryptocurrency was recently trading at around $85,000, up 7% over the past week but still well below its peak.

Moreover, rising mining difficulty has placed pressure on operations. This increase makes it harder for miners to recover their costs, forcing many to look for additional funding sources.

Data from CryptoQuant showed that miners were selling their Bitcoin holdings at an increased rate. On April 7, miners sold a total of 15,000 BTC—the third-largest daily outflow this year—worth approximately $1.12 billion.

Tether’s investment strategy indicates a broader interest in the Bitcoin mining space beyond its core stablecoin business. On Monday, the company announced it would support Bitcoin mining pool Ocean by providing hash rate to help mine blocks and collect BTC rewards.

The company is best known for USDT, the largest stablecoin and third-largest cryptocurrency by market capitalization. USDT is designed to maintain a stable value backed by dollars, treasuries, and other investments.

Tether has faced regulatory scrutiny in the past. In February 2021, Tether agreed to stop doing business in New York following a two-year state attorney general investigation that found the company had “made false statements about the backing” of its stablecoin.

Since then, Tether has been focusing on transparency and released several reports on its activities. The company also stated it is working with a Big Four accounting firm to obtain an independent audit.

Bitdeer, founded by Jihan Wu, is pursuing a strategy of vertical integration in the Bitcoin sector. The company aims to control all aspects of its operations, including producing mining chips and managing its own power sources.

Recent test results for Bitdeer’s SEALMINER A3 chip showed performance below 10 J/TH in laboratory conditions. This development aligns with Bitdeer’s focus on enhancing mining efficiency and optimizing energy usage.

Earlier this year, Bitdeer announced that Tether had purchased $100 million in shares through private placement financing, with an option to buy another $50 million later.

Paolo Ardoino, CEO of Tether, expressed interest in working closely with Bitdeer on “critical infrastructure projects.” Tether has also entered El Salvador’s Volcano Energy mining project, showcasing its deeper involvement in the Bitcoin ecosystem.

Linghui Kong, Chief Business Officer at Bitdeer, highlighted that Tether’s support would contribute to accelerating Bitdeer’s growth and leadership position in sustainable and efficient Bitcoin mining.

This partnership also reflects the expanding scope of cryptocurrency firms as they venture beyond their core focus to explore opportunities in technology and energy sectors, potentially seeking to diversify revenue streams during market downturns.