SCHEDULE 13D/A: Tether Entities Boost Stake in Bitdeer Technologies Group to 21.4% Amidst Recent Share Acquisitions

Tether Holdings, S.A. de C.V. and its subsidiaries, along with Giancarlo Devasini, have increased their beneficial ownership in Bitdeer Technologies Group to 21.4% through recent open market purchases and warrant exercises.

Summary

• Tether Holdings, S.A. de C.V., Tether International, S.A. de C.V., Tether Investments, S.A. de C.V., and Giancarlo Devasini collectively beneficially own 31,891,689 Class A ordinary shares of Bitdeer Technologies Group.
• This aggregate ownership represents 21.4% of the outstanding Class A Shares, calculated based on 149,286,361 shares outstanding, which includes 144,099,734 shares as of January 2, 2025, and 5,186,627 shares from warrant exercises.
• The total beneficial ownership includes 8,117,702 shares held by Tether Investments, 18,587,360 shares held by Tether International, and 5,186,627 shares acquirable upon the exercise of warrants held by Tether International.
• Tether Investments S.A. de C.V. made several open market purchases between February 26, 2025, and March 13, 2025, acquiring a total of 1,825,000 shares at prices ranging from $9.89 to $10.00 per share.
• The reporting entities, previously incorporated in the British Virgin Islands, have re-domiciled to El Salvador.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The increased stake by Tether entities suggests confidence in Bitdeer Technologies Group. While the document itself is a regulatory filing and neutral in tone, the action of increasing ownership is generally seen as positive. The historical regulatory issues of Tether are noted but are not directly related to Bitdeer's operational performance.

Positives

• The increased stake by Tether, a significant player in the cryptocurrency stablecoin market, could signal strong confidence in Bitdeer Technologies Group's future prospects and strategic direction.
• The acquisition of additional shares through open market purchases indicates active investment and potentially a belief that Bitdeer's shares are attractively valued at current prices.

Negatives

• The document itself does not present direct negatives for Bitdeer, but the historical legal proceedings against Tether entities (CFTC and NYAG settlements) could be perceived as a reputational risk for the reporting persons, which might indirectly influence investor perception of their investments.

Risks

• Past regulatory proceedings against Tether entities: In October 2021, the U.S. Commodity Futures Trading Commission (CFTC) settled with Tether Holdings Limited, Tether Limited, Tether Operations Limited, and Tether International Limited, resulting in a $41 million civil monetary penalty without admission or denial of findings related to alleged untrue or misleading statements about USDT being fully backed by U.S. Dollars.
• In February 2021, Tether and several Bitfinex companies settled with the Office of the Attorney General of the State of New York (NYAG) for $18.5 million, agreeing to discontinue trading activity with New York persons or entities and submit to mandatory reporting on certain business functions.
• Giancarlo Devasini, as a reporting person, disclaims beneficial ownership of these shares except to the extent of his pecuniary interest, which may indicate a complex ownership structure or limited direct control over the entire block of shares.

Future Outlook

The document is a Schedule 13D amendment, primarily disclosing changes in beneficial ownership and past transactions. It does not contain explicit forward-looking statements or guidance regarding the issuer's or reporting persons' future operations or financial performance.

Industry Context

This filing indicates a significant investment by Tether, a major player in the cryptocurrency stablecoin market, into Bitdeer Technologies Group, a leading cryptocurrency mining company. This suggests continued institutional interest and investment in the digital asset infrastructure sector, particularly in Bitcoin mining operations, despite market volatility. It highlights a potential strategic alignment between stablecoin issuers and mining operations, potentially signaling a broader trend of vertical integration or strategic partnerships within the crypto ecosystem.

Comparison to Industry Standards

• The acquisition of a 21.4% stake by a single group of related entities is a substantial position, indicating a high level of conviction, similar to strategic investments seen in other sectors where large institutional or corporate investors take significant minority stakes.
• The open market purchases at prices around $10.00 per share suggest that the reporting persons view Bitdeer's shares as attractively valued, aligning with typical investment strategies of accumulating shares when perceived as undervalued or for strategic control.
• The re-domiciliation of Tether entities to El Salvador is a notable corporate governance change, potentially influenced by regulatory environments or strategic operational considerations, a trend observed in some crypto-related businesses seeking favorable jurisdictions.

Corporate Governance

Legal Proceedings

• In October 2021, Tether Holdings Limited, Tether Limited, Tether Operations Limited, and Tether International Limited settled regulatory proceedings with the U.S. Commodity Futures Trading Commission (CFTC), paying a civil monetary penalty of $41 million without admitting or denying findings related to alleged untrue or misleading statements about USDT being fully backed by U.S. Dollars.
• In February 2021, Tether and several Bitfinex companies entered into an agreement with the Office of the Attorney General of the State of New York (NYAG) to settle a 2019 proceeding, paying $18.5 million in penalties and agreeing to discontinue trading activity with New York persons or entities and submit to mandatory reporting on certain business functions.

Stakeholder Impact

• Shareholders: The increased stake by a major investor like Tether could be viewed positively, potentially signaling confidence and stability. It also means a larger portion of the company's voting power is concentrated.
• Employees: No direct impact on employees is mentioned in the document.
• Customers: No direct impact on customers is mentioned in the document.
• Suppliers: No direct impact on suppliers is mentioned in the document.
• Creditors: No direct impact on creditors is mentioned in the document.

Next Steps

• Continued monitoring of Bitdeer Technologies Group's performance by the Reporting Persons.
• Potential for further open market purchases or strategic actions by the Reporting Persons, though not explicitly stated.
• Ongoing compliance with SEC reporting requirements for beneficial ownership.

Key Dates

Recommendation

Keywords

Bitdeer Technologies Group, Tether Holdings, Tether International, Tether Investments, Giancarlo Devasini, Schedule 13D, Beneficial Ownership, Class A Shares, Share Acquisition, Warrants, Cryptocurrency Mining, Blockchain, SEC Filing, Institutional Investment