Tether has invested $32 million in Bitdeer amid struggling Bitcoin miners. Tether’s stake in Bitdeer increased to 21%, and it plans to support the Bitcoin mining pool, Ocean. Bitdeer’s share price has dropped significantly, reflecting industry challenges. Tether faces scrutiny but asserts the backing of its stablecoin, USDT.
Bitcoin mining companies are facing significant challenges with the cryptocurrency’s price fluctuating and investors offloading equity. In contrast, Tether, a leading stablecoin issuer, has made a substantial investment in Bitdeer, amounting to approximately $32 million, as indicated in an SEC filing. This acquisition was made when Bitdeer’s stock price experienced a decline.
Tether’s previous year investment in Bitdeer has now expanded to a 21% stake following further purchases. Moreover, Tether announced support for the Bitcoin mining pool, Ocean, by providing it with hash rate resources to assist in block mining and BTC rewards acquisition. Currently, Bitdeer shares are trading at $7.62, reflecting a 67% decrease year-to-date amidst a challenging market environment for miners.
Coinciding with these struggles, major mining companies like MARA Holdings and Riot Platforms have reported significant share price drops of 26% and 38%, respectively, this year. Recently, miners have been observed selling off Bitcoin rapidly to acquire funds amidst these challenging conditions, as evidenced by data from CryptoQuant. Bitcoin’s current trading price is around $85,000, up nearly 7% in the past week but still significantly lower than its peak near $109,000 in January.
Tether operates USDT, the largest stablecoin by market capitalisation, which is utilized across multiple blockchains. As a stablecoin, USDT’s value is tied to traditional assets such as dollars and treasuries, allowing traders to execute transactions without interacting with traditional banking systems. However, Tether has faced legal scrutiny, particularly after a New York Attorney General’s investigation revealed inaccuracies regarding its stablecoin backing in February 2021.
Despite this, Tether maintains its backing claims through regular attestations and transparency reports, and it is engaging a Big Four accounting firm to perform independent audits to bolster its credibility.
