Bitdeer stock plummets again as Tether trims major stake
Bitdeer Technology Group reported a significant net loss of $266.7 million in Q3, a 422% increase compared to last year. Following the announcement, Tether reduced its stake in the Bitcoin mining company by selling 7.7 million shares, lowering its holdings from roughly 23% to 18%. Tether's gradual exit, marked by open-market transactions since mid-September, exerted additional pressure on Bitdeer's stock, which dropped 14.9%, closing at $15.02. Tether's exit comes after earlier aggressive accumulation of shares at lower prices earlier this year. The timing of the sell-off closely aligns with Bitdeer's disappointing earnings report.
Layer-1
Bitdeer Faces Major Losses and Investor Sell-Off
Bitdeer Technology Group announced a massive $266 million net loss this week, a staggering 422% jump compared to the same quarter last year. Following the announcement, its cornerstone investor, Tether, decided to significantly reduce its stake in the company.
Tether Reduces Its Stake in Bitdeer
Tether, a major shareholder, trimmed its investment by 7.7 million shares, reducing its overall stake from 23% to 18%, as per recent filings. This disposal generated approximately $166 million, with Tether’s shareholding dropping from 38 million to 30.36 million shares.
Impact of Tether's Stake Reduction on Bitdeer Stock Price
The sell-off coincided with Bitdeer’s disappointing Q3 net loss announcement. Tether’s gradual exit acted as an accelerant to the already volatile stock prices. On Tuesday, Bitdeer’s stock price dropped sharply, closing at $15.02 per share, marking a decline of 14.9%.
Timeline of Tether's Share Disposals
According to filings with the U.S. Securities and Exchange Commission (SEC), Tether began reducing its position in mid-September, selling shares at progressively higher prices:
- September 12: Sold 351,061 shares at an average price of $16.07.
- September 22-23: Sold shares at prices of $17.26 and $18.28, respectively.
The strategy intensified in mid-October, culminating on October 15, when Tether sold over 3.2 million shares at elevated prices ranging from $25.49 to $27.16 per share.
Contrast with Previous Accumulation Strategy
Tether’s recent sales contrast with its earlier aggressive accumulation of Bitdeer stock. From February to April, the company purchased 8 million shares at bargain prices ranging from $7.61 to $10, solidifying its position as a cornerstone investor at the time.
Uncertainty Surrounding Tether's Decision
The motivations behind Tether’s trimming of its stake remain unclear. However, the timing coincided with Bitdeer’s Q3 earnings, revealing a $266.7 million net loss, which significantly impacted investor confidence.