SINGAPORE - Bitdeer Technologies Group (NASDAQ:BTDR), a global blockchain and high-performance computing company, recently completed a private placement deal with Tether International Limited.
The agreement, which closed on Monday, involved the issuance of 18,587,360 Class A ordinary shares and warrants for up to 5,000,000 additional shares for $10.00 each. This transaction has resulted in $100 million in gross proceeds.
The warrants, which come with customary anti-dilution provisions, allow Tether to purchase additional shares within the next 12 months. If fully exercised, the warrants could inject another $50 million into Bitdeer. The company plans to allocate the net proceeds from this deal towards expanding its data center capabilities, developing ASIC-based mining rigs, and for general corporate purposes.
Linghui Kong, Chief Business Officer of Bitdeer, expressed enthusiasm about Tether becoming a significant investor, indicating that it reflects confidence in Bitdeer's vision and operations. Paolo Ardoino, CEO of Tether, also commented on the partnership, highlighting Bitdeer's strong position in the Bitcoin mining industry and its alignment with Tether's strategic goals.
Cantor Fitzgerald & Co. served as the placement agent for the transaction. The securities involved have not been registered under the Securities Act of 1933 and are therefore subject to restrictions on their sale in the United States. Bitdeer has committed to filing registration statements for the resale of the shares connected with this private placement.
Bitdeer, headquartered in Singapore, has established data centers in multiple countries and offers a range of computing solutions, including cloud capabilities for artificial intelligence applications. Tether, known for its stablecoin technology, aims to bridge the gap between traditional and decentralized finance.
This press release statement is the source of the facts reported in this article.
InvestingPro Insights
As Bitdeer Technologies Group (NASDAQ:BTDR) solidifies its financial standing with the recent private placement deal, insights from InvestingPro shed light on the company's current financial health and market performance. According to the latest data, Bitdeer's market capitalization stands at a modest $690.92 million. While the company's P/E ratio is not applicable, indicating that it has not been profitable over the last twelve months, the adjusted P/E ratio for the last twelve months as of Q1 2024 is -33.26, underscoring the company's challenges in generating earnings relative to its share price.
Despite these challenges, Bitdeer shows a robust revenue growth of 31.69% over the last twelve months as of Q1 2024, with a significant quarterly surge of 64.64% in Q1 2024. This growth trajectory suggests a strong demand for the company's high-performance computing solutions. However, an InvestingPro Tip points out that the company is quickly burning through cash, which is a critical factor to consider when evaluating the sustainability of its expansion efforts. Additionally, Bitdeer's stock price has experienced a large uptick over the last six months, rising by 29.33%, which may attract investors looking for momentum in the blockchain and computing sectors.
For those considering a deeper analysis of Bitdeer, InvestingPro offers additional tips on the company's financials and performance metrics. Subscribers can access these valuable insights and leverage the exclusive offer with coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With several analysts revising their earnings downwards for the upcoming period, staying informed with comprehensive data and expert analysis is more crucial than ever for making informed investment decisions.
Discover more about Bitdeer's financial outlook and get access to a total of 9 InvestingPro Tips by visiting the company's page on InvestingPro at https://www.investing.com/pro/BTDR.
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