Bitdeer Signs a $150M Share Sale Deal with B.Riley Financial

2023-08-10 03:28:36

Bitcoin miner Bitdeer has entered into a $150 million Class A share sale deal with B.Riley Financial.
B.Riley Financial will have the right but not the obligation to purchase up to $150 million worth of Class A shares.
The sale period is three years, and B. Riley cannot purchase more than 1 million, or 25%, of the miner’s shares.
As a part of the agreement, B. Riley will be reimbursed for legal fees and disbursements up to $50,000.

Crypto mining company Bitdeer has officially entered into an agreement with B. Riley Financial, a diversified financial services company based in the United States. The Bitcoin miner, which was earlier a part of another leading crypto mining company, Bitmain, will sell close to $150 million of its Class A ordinary shares to the financial services company, as per the agreement

As per a filing with the United States Securities and Exchange Commission (SEC) on August 9, B.Riley Financial will have the right but not the obligation to purchase up to $150 million worth of Class A ordinary shares of the crypto mining company over the next three years.

Also, the agreement includes a clause where the financial services company is not allowed to purchase more than 1 million, or 25%, of Bitdeer Class A shares that are traded on Nasdaq during the purchase period

“Pursuant to the Purchase Agreement, the Company has the right to sell to B. Riley Principal Capital II, up to US$150,000,000 of its Class A ordinary shares, par value US$0.0000001 per share (the “Class A Ordinary Shares”), subject to certain limitations and conditions set forth in the Purchase Agreement,” the filing read.

Bitdeer has provided a special reserved seat to Riley Financial as a result of this agreement. It is crucial to mention here that Class A shares are not sold to public investors because they give more power and rights to the shareholder than Class B shares. To summarize, the deal gives the financial services company a part of the ownership of the Bitcoin mining company

Moreover, the transaction also involves Bitdeer paying close to 0.5% of the agreement’s total value in exchange for B.Riley Financial’s commitment to the purchase. Additionally, the latter will also be reimbursed for legal fees and disbursements up to $50,000. More importantly, Bitdeer went public in a SPAC deal with Blue Safari Group in April

The mining industry was hit hard by the crypto winter, with firms like Compute North filing for bankruptcy. However, some Bitcoin miners, like CleanSpark, continued to expand their operations and acquire more miners to increase their hashrate.

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