SCHEDULE 13D/A: Tether Entities Increase Stake in Bitdeer Technologies Group to 24.2%

Tether Holdings, S.A. de C.V. and its subsidiaries, along with Giancarlo Devasini, have increased their beneficial ownership in Bitdeer Technologies Group to 24.2% through recent open market purchases and warrant holdings.

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, the "Reporting Persons") have filed Amendment No. 7 to their Schedule 13D regarding their stake in Bitdeer Technologies Group.
• The Reporting Persons collectively beneficially own 36,066,689 Class A ordinary shares of Bitdeer Technologies Group, representing 24.2% of the outstanding Class A Shares.
• This ownership includes 12,292,702 Class A Shares held by Tether Investments, S.A. de C.V., 18,587,360 Class A Shares held by Tether International, S.A. de C.V., and an additional 5,186,627 Class A Shares that may be acquired upon the exercise of warrants held by Tether International, S.A. de C.V.
• The percentage is calculated based on 149,286,361 Class A Shares outstanding, which includes 144,099,734 shares outstanding as of January 2, 2025, plus the 5,186,627 shares from warrants.
• Tether Investments, S.A. de C.V. made open market purchases of 5,999,960 Class A Shares between February 26, 2025, and April 14, 2025, at prices ranging from $7.611 to $10.00 per share.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While the increased stake by a major digital asset entity like Tether is a positive signal of confidence in Bitdeer, the declining share price during the acquisition period and Tether's past regulatory issues introduce elements of caution.

Positives

• The increased beneficial ownership by Tether entities, a significant player in the digital asset space, could be interpreted as a vote of confidence in Bitdeer Technologies Group's long-term prospects.
• The continued accumulation of shares by a major investor may signal perceived undervaluation or strategic interest in the company.

Negatives

• Tether Investments S.A. de C.V.'s recent open market purchases occurred during a period of declining share prices, with acquisition costs falling from $10.00 to $7.611, which could reflect negative market sentiment or a lack of price support for Bitdeer's shares.
• The reporting entities (Tether) have a history of significant regulatory penalties, including a $41 million civil monetary penalty from the CFTC in October 2021 and an $18.5 million penalty from the NYAG in February 2021, which could introduce reputational or regulatory risk by association for Bitdeer.

Risks

• The Reporting Persons, particularly Tether, have faced significant regulatory scrutiny and penalties in the past, which could indirectly impact investor perception of Bitdeer due to the substantial ownership stake.
• The declining trend in share prices during the recent acquisition period by Tether Investments S.A. de C.V. suggests potential market volatility or underlying concerns regarding Bitdeer's valuation or operational performance.

Future Outlook

The document is a beneficial ownership filing and does not provide forward-looking statements or guidance from Bitdeer Technologies Group. It primarily details the current ownership structure and recent acquisition activities of the Reporting Persons.

Industry Context

This filing highlights a significant investment by a major stablecoin issuer (Tether) into a prominent cryptocurrency mining company (Bitdeer Technologies Group). This indicates a deepening integration or strategic interest between different segments of the digital asset industry, potentially reflecting a long-term view on the value of Bitcoin mining infrastructure and the broader crypto ecosystem.

Legal Proceedings

• In October 2021, the U.S. Commodity Futures Trading Commission (CFTC) settled regulatory proceedings against Tether entities (Tether Holdings Limited, Tether Limited, Tether Operations Limited, and Tether International Limited) for making untrue or misleading statements regarding the backing of USDT stablecoin from June 2016 to February 2019. This resulted in a civil monetary penalty of $41 million.
• In February 2021, the Office of the Attorney General of the State of New York (NYAG) settled a 2019 proceeding with Tether and affiliated Bitfinex companies. The settlement involved an $18.5 million penalty and required Tether and Bitfinex 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 Tether could be viewed as a positive endorsement, potentially attracting more institutional interest. However, Tether's regulatory history might also be a point of concern for some investors.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Key Dates

Keywords

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