TLDR
- Tether has purchased an additional $32 million in Bitdeer shares as Bitcoin mining companies face market slumps
- Tether has increased its stake in Bitdeer to over 21% through multiple investments
- Bitcoin miners, including Bitdeer, are struggling with stock prices down significantly in 2025
- Miners sold large amounts of Bitcoin in April, with 15,000 BTC sold in a single day
- Tether CEO Paolo Ardoino mentioned working with Bitdeer on “critical infrastructure projects”
Stablecoin giant Tether has significantly increased its investments in Bitcoin miner Bitdeer, purchasing approximately $32 million in additional equity this April.
This move comes as the broader Bitcoin mining sector experiences a steep market downturn.
The latest SEC filing shows Tether acquiring these shares during a period when Bitdeer’s stock price has plummeted. Nasdaq-listed Bitdeer (BTDR) closed at $7.62 per share, representing a dramatic 67% decrease year-to-date.
This purchase builds on Tether’s previous investments in the company. By March 2025, Tether had already increased its ownership to 21.4% of Bitdeer’s outstanding shares through its subsidiaries Tether International and Tether Investments.
Tether first entered its relationship with Bitdeer in 2024 with a $100 million investment in private placement financing. That deal included an option to purchase an additional $50 million in shares later.
Mining Industry Struggles
The broader Bitcoin mining sector is facing serious headwinds in 2025. According to investment bank JP Morgan, March marked the worst month on record for the industry’s 14 top public companies, which collectively lost approximately 25% of their market capitalization – about $6 billion in value.
Major players have not been spared. MARA Holdings, the largest miner by market cap, has seen its share price drop 26% this year. Competitor Riot Platforms has fared even worse with a 38% decline.
Mining companies appear to be feeling the financial pressure. Data from CryptoQuant revealed that miners engaged in frantic selling last week, offloading Bitcoin likely to raise operational funds. On April 7 alone, miners sold 15,000 BTC – worth over $1.12 billion – making it the third-largest daily outflow this year.
These challenges come as Bitcoin trades sideways after retreating from its January all-time high. The cryptocurrency recently traded at around $85,000, up 7% over the past week but still well below its record peak near $109,000.
Strategic Expansion
Despite the industry downturn, Tether appears to be executing a strategic pivot toward Bitcoin mining. The company has shown interest beyond Bitdeer, announcing on Monday that it would support Bitcoin mining pool Ocean by providing hash rate to help mine blocks and collect BTC rewards.
Tether CEO Paolo Ardoino has indicated the company looks forward to working closely with Bitdeer on “critical infrastructure projects.” The stablecoin issuer has also entered El Salvador’s Volcano Energy mining project, showing its growing commitment to the mining sector.
Bitdeer, founded by Jihan Wu, aims to achieve vertical integration in the Bitcoin mining industry. The company is working to produce its own mining chips and manage its power sources. Recently, Bitdeer announced test results for its SEALMINER A3 chip, reporting performance below 10 J/TH in laboratory conditions.
Linghui Kong, Chief Business Officer at Bitdeer, has stated that Tether’s support will help accelerate the company’s growth and leadership in sustainable and efficient Bitcoin mining.
Tether is best known as the company behind USDT, the largest stablecoin and third-largest cryptocurrency by market capitalization. USDT is often the most-traded crypto token by daily volume and runs on multiple blockchains.
As a stablecoin, USDT is backed by dollars, treasuries, and other investments, allowing it to maintain a stable value unlike volatile cryptocurrencies such as Bitcoin. This stability enables traders to enter and exit positions without using traditional banking services.
The company has faced legal challenges in the past. In February 2021, Tether agreed to cease operations in New York following a two-year state attorney general investigation that found it had “made false statements about the backing” of its stablecoin.
In response to such concerns, Tether has pointed to its quarterly attestations and transparency reports as evidence that its cryptocurrency is backed as claimed. The firm has also confirmed it is working with a Big Four accounting firm to obtain independent audits.
The growing involvement of Tether in Bitcoin mining represents a convergence between stablecoin issuers and mining operations. According to industry analysts, this strategic shift may indicate cryptocurrency firms are moving beyond their core digital asset focus to explore opportunities in associated technology and energy sectors.
