Tether invests $100 million in Bitdeer shares with an option for an additional $50 million

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Tether has invested 100 million dollars in Bitdeer shares, with an option to purchase an additional 50 million dollars. Bitdeer announced that it will use the proceeds to finance the expansion of its data center and the development of ASIC-based mining facilities.

Let’s see all the details below. 

Tether: the investment in shares aims to enhance Bitdeer’s mining operations and processing capacity

As anticipated, the stablecoin company Tether has agreed to purchase shares of the Bitcoin miner Bitdeer for a total of 150 million dollars. 

Bitdeer has concluded an agreement for the private placement of 18,587,360 Class A ordinary shares, generating proceeds of 100 million dollars, according to an announcement published today.

The agreement also includes a warrant for the purchase of an additional 5 million shares at 10 dollars each, which could add an additional 50 million dollars if fully exercised. 

Bitdeer has stated that it intends to use the proceeds to finance the expansion of its data center and the development of mining facilities based on ASIC, being the company headquartered in Singapore.

After the announcement, the price of Bitdeer shares increased by over 4%, reaching $6.08 in pre-market trading. 

Tether, the developer of the largest stablecoin in the world, USDT, has recently divided its business into four divisions to reflect its broad interest in the development of the cryptocurrency economy.

One of these four units is focused on investments in Bitcoin mining.

Tether leads the growth of stablecoins: market capitalization exceeds $150 billion 

According to data from Glassnode, the stablecoin market continues to expand, with the combined market capitalization of the top five stablecoins exceeding 150 billion dollars.

Tether (USDT) positions itself at the top with a market capitalization of 112 billion dollars, consolidating its dominance with a market share of nearly 75%, a level not seen since January 2021. 

The significant holdings of Tether in U.S. Treasuries highlight its crucial role in the acquisition of U.S. debt.

Glassnode data indicates that USDC, the second largest stablecoin, has a market capitalization of 32.2 billion dollars.

However, its market share has dropped from the peak of July 2022, almost 38%, to the current 22%. This change indicates a growing preference of investors for USDT.

After USDC, DAI holds a market capitalization of 5.3 billion dollars, maintaining its position as a reliable decentralized stablecoin. 

TrueUSD (TUSD) and Binance USD (BUSD) complete the top five with market capitalizations of 503 million dollars and 70 million dollars, respectively.

The expansion of the market capitalization of these stablecoins highlights their growing importance in the digital asset economy, providing liquidity to the market. 

With the growing dominance of Tether, its influence on the broader financial landscape, especially in terms of acquiring U.S. debt, becomes increasingly significant.

The large Russian companies adopt Tether to evade US sanctions

The two main producers of non-sanctioned metals in Russia have started conducting cross-border transactions with Chinese suppliers and customers using the stablecoin Tether USDT. 

This in the calculated attempt to avoid possible secondary sanctions from the United States Treasury. Executives of these Russian metallurgical companies have confirmed the use of USDT, with some transactions routed through Hong Kong. 

This change has become necessary because the alternatives have proven to be slower or riskier, often leading to the freezing of bank accounts. Tether has not released any public comment on this development.

The choice of large Russian companies to adopt blockchain technology highlights the lasting effects of international sanctions imposed after Russia’s invasion of Ukraine in February 2022.

According to the digital currency expert Ivan Kozlov, transactions in stablecoin are efficient, economical, and take only five to fifteen seconds. 

The exporters who hold their assets in stablecoin will benefit from it, especially from this. Tether, with its USDT pegged to the US dollar, offers a reliable means for such exchanges.

Kozlov added that there are often slower procedures or the possibility of freezing bank accounts abroad when using alternatives to stablecoins. 

The freezing of several accounts in various countries for some non-sanctioned companies highlights the unstable nature of conventional financial channels.

This trend extends beyond commodity trading and reflects a wider change in the way global transactions are conducted in the face of stringent financial regulations.

On the other hand, according to a previous report by Coin Edition, Russian lawmakers are planning to ban the use of cryptocurrencies to preserve the supremacy of the ruble. 

Starting from September 1st, only digital assets issued in Russia will be allowed, signaling an important regulatory change on the horizon.