SCHEDULE 13D/A: Tether Entities Increase Stake in Bitdeer Technologies Group to 25.5% in Latest SEC Filing Amendment

Tether Holdings, S.A. de C.V. and its subsidiaries, along with Giancarlo Devasini, have updated their beneficial ownership in Bitdeer Technologies Group to 25.5% of Class A ordinary shares, as detailed in an Amendment No. 8 to their Schedule 13D filing.

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") beneficially own an aggregate of 38,066,689 Class A ordinary shares of Bitdeer Technologies Group.
• This aggregate ownership represents 25.5% of the outstanding Class A shares, calculated based on 149,286,361 Class A shares outstanding, which includes 144,099,734 shares outstanding as of January 2, 2025, and 5,186,627 shares acquirable upon warrant exercise.
• Tether Holdings, S.A. de C.V. and Giancarlo Devasini (who has a greater than 50% voting interest in Tether Holdings) each have shared voting and dispositive power over all 38,066,689 shares.
• Tether International, S.A. de C.V. has shared voting and dispositive power over 23,773,987 shares, including 18,587,360 directly held and 5,186,627 from warrants.
• Tether Investments, S.A. de C.V. has shared voting and dispositive power over 14,292,702 shares, representing 9.9% of the Class A shares outstanding as of January 2, 2025.
• Tether Investments S.A. de C.V. completed multiple open market purchases of Bitdeer Class A shares between February 26, 2025, and April 22, 2025, with prices ranging from $7.2164 to $10.00 per share.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The significant increase in beneficial ownership by a major crypto entity like Tether suggests strong confidence in Bitdeer. However, the past regulatory issues of Tether, while not directly related to Bitdeer's operations, introduce a minor cautionary note regarding the reporting entity's background.

Positives

• The increased beneficial ownership by Tether entities, a significant player in the cryptocurrency space, may signal confidence in Bitdeer Technologies Group's future prospects.
• The continued open market purchases by Tether Investments S.A. de C.V. demonstrate ongoing investment and commitment to the issuer.

Negatives

• The reporting persons, particularly Tether entities, have a history of regulatory proceedings, 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, related to past practices concerning USDT backing and trading activities.

Risks

• The past regulatory issues faced by Tether Holdings and its subsidiaries, including significant penalties from the CFTC and NYAG, could potentially impact the reputation or perceived stability of the reporting entities, which in turn could indirectly affect Bitdeer Technologies Group due to the significant ownership stake.
• The concentration of a large percentage (25.5%) of Bitdeer's Class A shares under the control of a single group of related entities and an individual (Giancarlo Devasini) could lead to significant influence over company decisions and potentially limit the liquidity of the stock.

Future Outlook

The document is a Schedule 13D amendment focused on beneficial ownership disclosure and does not provide explicit forward-looking statements or guidance regarding Bitdeer Technologies Group's operations or financial performance. However, the continued accumulation of shares by Tether entities suggests a long-term interest in the company.

Management Comments

• Giancarlo Devasini, President of Tether Holdings, S.A. de C.V. and Tether International, S.A. de C.V., and Sole Administrator of Tether Investments, S.A. de C.V., certified that the information set forth in the statement is true, complete, and correct to the best of his knowledge and belief.

Industry Context

This filing highlights the continued investment by major players in the cryptocurrency and digital asset space, such as Tether, into companies like Bitdeer Technologies Group, which operates in the Bitcoin mining sector. This indicates ongoing strategic interest and capital allocation within the broader blockchain and crypto industry, potentially signaling confidence in the long-term viability and growth of Bitcoin mining operations despite market fluctuations.

Comparison to Industry Standards

• NA

Management Changes

Corporate Governance

Legal Proceedings

• In October 2021, the U.S. Commodity Futures Trading Commission (CFTC) settled regulatory proceedings against Tether Holdings Limited, Tether Limited, Tether Operations Limited, and Tether International Limited, resulting in a civil monetary penalty of $41 million. The allegations concerned untrue or misleading statements regarding whether USDT was fully backed by U.S. Dollars.
• 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. This settlement involved paying $18.5 million in penalties to New York State and required Bitfinex and Tether to discontinue trading activity with New York persons or entities and submit to mandatory reporting on certain business functions.

Related Party Transactions

• Tether Investments, S.A. de C.V., a wholly owned subsidiary of Tether Holdings, S.A. de C.V., engaged in open market purchases of Bitdeer Technologies Group's Class A shares between February 26, 2025, and April 22, 2025. These transactions are considered related party dealings within the group of Reporting Persons.
• Giancarlo Devasini, who has a greater than 50% voting interest in Tether Holdings, S.A. de C.V., is deemed to beneficially own the shares held by Tether Holdings and its subsidiaries, establishing a related party relationship for the entire reported stake.

Stakeholder Impact

• Shareholders: The increased significant ownership stake by Tether entities may be viewed positively, indicating strong institutional confidence and potentially providing a stable long-term shareholder base. However, it also means a larger portion of the company's voting power is concentrated.
• Management: The substantial stake held by Tether entities could lead to increased influence from the Reporting Persons on strategic decisions and corporate governance of Bitdeer Technologies Group.

Next Steps

• The Reporting Persons will continue to review their investment in Bitdeer Technologies Group and may, from time to time, acquire additional shares, dispose of shares, or engage in other transactions concerning the issuer's securities, depending on market conditions and other factors.

Key Dates

Recommendation

Keywords

Bitdeer Technologies Group, Tether Holdings, Tether International, Tether Investments, Giancarlo Devasini, Class A ordinary shares, Beneficial ownership, SEC filing, Schedule 13D, Cryptocurrency mining, Blockchain, Digital assets, Share acquisition, Warrants