Tether Steps Up Bitdeer Investment Amid Bitcoin Mining Selloff
While many Bitcoin miners are under pressure from volatile BTC prices and rising mining costs, Tether – the issuer of the USDT stablecoin – is bucking the trend and increasing its stake in Bitdeer, one of the biggest names in the Bitcoin mining industry.
According to a filing with the US Securities and Exchange Commission (SEC), Tether invested an additional $32 million in Bitdeer in April, significantly increasing its ownership in the company. The move comes amid a sharp decline in Bitdeer’s (BTDR) stock price, which is currently trading at around $7.62 per share – down nearly 67% since the start of the year.
This isn’t the first time Tether has targeted Bitdeer. The company announced initial investments last year and continued to expand in March this year. Meanwhile, Tether announced that it would support the Ocean Mining pool by providing hashrate to increase network processing power and receive BTC rewards.
Meanwhile, publicly listed Bitcoin mining companies are going through an unprecedented period of hardship. The latest report from JP Morgan said that the top 14 mining companies lost about $6 billion in market capitalization in March alone. Names such as Marathon Digital Holdings (MARA) and Riot Platforms have both dropped more than 25–38% since the beginning of the year.
Data from CryptoQuant also shows that miners have been selling off Bitcoin to maintain operations, especially in the first week of April. On April 7 alone, the amount of sales reached 15,000 BTC – equivalent to at least $1.12 billion, marking the third-largest outflow from miner wallets this year.
As the industry struggles with costs and profitability, Tether is playing an increasingly prominent role in the Bitcoin mining ecosystem. With a strong reserve of USDT – the world’s largest-traded stablecoin – Tether is not only expanding its influence but also consolidating its position as a key financial force in the blockchain industry.
Despite facing legal issues related to USDT’s transparency and guaranty, Tether has significantly improved its financial reporting system, announcing that it is working with one of the Big Four auditing firms to strengthen market confidence.
As other names are forced to scale back or sell off assets, Tether’s “buying on fear” strategy may be a long-term strategic move for its ambition to dominate the global crypto mining infrastructure.