- Stablecoin giant Tether has purchased approximately $32 million in equity in Bitcoin mining company Bitdeer, increasing its stake in the company.
- Bitcoin miners are facing challenges as cryptocurrency prices trade sideways, with Bitdeer‘s stock down nearly 67% year-to-date.
- Tether is expanding its involvement in Bitcoin mining, recently announcing support for mining pool Ocean by providing hash rate to help mine blocks.
Tether has invested approximately $32 million in equity in publicly traded Bitcoin mining company Bitdeer during April, despite ongoing struggles in the mining sector. This investment comes as Bitcoin trades sideways and mining companies experience significant stock price declines, according to an SEC filing that revealed the stablecoin giant’s latest move into the mining industry.
The SEC filing shows Tether acquired the shares amid Bitdeer‘s declining stock price. This purchase builds on Tether‘s previous investments in the company, with filings from March indicating the stablecoin issuer had already increased its stake in Bitdeer to 21% before this latest acquisition.
Mining Industry Downturn
Nasdaq-listed Bitdeer (BTDR) closed trading at $7.62 per share, representing a nearly 67% decline year-to-date. This significant drop is part of a broader industry downturn affecting major mining operations. MARA Holdings, the largest miner by market capitalization, has seen its share price fall 26% this year, while Riot Platforms is down over 38%. Data from CryptoQuant indicated that miners recently engaged in frantic selling of Bitcoin, likely to raise operational funds.
The mining sector’s difficulties stem from Bitcoin’s price stagnation and increasing mining difficulty, which has made it challenging for miners to recover their operational costs. Bitcoin currently trades around $85,000, up nearly 7% over the past week but well below its January record high of approximately $109,000.
Tether’s Expanding Mining Interests
On Monday, Tether announced it would support Bitcoin mining pool Ocean by providing hash rate to assist in mining blocks and earning BTC rewards. This move signals the company’s growing commitment to the Bitcoin mining ecosystem despite the current market challenges.
Tether is the company behind 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, enabling traders to enter and exit positions without using traditional banking systems.
The stablecoin issuer has faced regulatory scrutiny in the past. In February 2021, Tether agreed to cease operations in New York following a two-year investigation by the state attorney general, which found the company had “made false statements about the backing” of its stablecoin. However, Tether has pointed to its quarterly attestations and transparency reports as evidence that its cryptocurrency is properly backed, and has confirmed it is working with a Big Four accounting firm to complete an independent audit.
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