Bitdeer Announces Acquisition of Desiweminer in an All-Stock Transaction
Bitdeer Technologies Group (NASDAQ: BTDR) has announced the acquisition of Desiweminer, a fabless crypto ASIC design company, in an all-stock transaction valued at 20 million Class A ordinary shares.
The acquisition, finalized on June 3, 2024, includes a vesting period of five to seven years for some shares and transfer restrictions for others for six to twelve months post-closing. This strategic move aims to enhance Bitdeer's ASIC design capabilities and accelerate product development, leveraging Desiweminer's advanced chip designs and experienced engineering team.
The integration is expected to strengthen Bitdeer's position in the high-performance computing sector, boosting innovation and market share in the multi-billion-dollar ASIC market.
- Acquisition valued at 20 million Class A ordinary shares.
- Desiweminer's technology complements Bitdeer's existing products.
- Strengthens Bitdeer's ASIC design capabilities.
- Accelerates time to market for new products.
- Desiweminer team to join Bitdeer's Singapore ASIC design team.
- Products featuring integrated technologies slated for imminent release.
- Adds nearly 30,000 high-performance machines to Bitdeer's portfolio.
- Positions Bitdeer to capture share in the multi-billion-dollar ASIC market.
- A portion of shares will vest over five to seven years, potentially delaying full benefits.
- Transfer restrictions on shares limit liquidity for six to twelve months.
- Subject to customary closing conditions, which could delay or alter the acquisition terms.
Insights
Bitdeer's acquisition of Desiweminer in an all-stock transaction has important ramifications for shareholders and market dynamics. This strategic move will potentially enhance Bitdeer's competitive edge in the high-performance computing and blockchain sectors. By acquiring Desiweminer, Bitdeer not only augments its technological capabilities but also consolidates its market position. The acquisition price of 20 million Class A ordinary shares signifies significant dilution; however, the long-term benefits of integrating advanced ASIC design expertise could offset this concern.
From a financial perspective, it’s important to consider the stock lock-up period for certain sellers, which could stabilize the share price in the short term by preventing immediate sell-offs. Additionally, the staggered vesting of shares over five to seven years provides an incentive for Desiweminer's team to stay committed, ensuring continuity and steady progress in technological integration.
This acquisition positions Bitdeer to capture a larger share of the multi-billion-dollar ASIC market. Investors should monitor the financial performance closely over the next few quarters to see tangible benefits from this merger and any potential cost synergies.
The acquisition of Desiweminer by Bitdeer has notable technological implications. Desiweminer’s expertise in designing cutting-edge ASICs for semiconductor processes at 4nm and below is vital for maintaining a leading position in the highly competitive blockchain and computing industries. These chips are important for enhancing the efficiency and performance of mining machines.
This acquisition allows Bitdeer to shorten its time to market for next-generation ASIC products, which is critical in an industry where technological advancements can quickly render existing products obsolete. The integration of Desiweminer’s technology could lead to significant enhancements in energy efficiency and processing power, directly benefiting Bitdeer’s product offerings.
For retail investors, understanding the importance of ASIC technology is essential. ASICs, or Application-Specific Integrated Circuits, are tailored for specific applications, offering superior performance compared to general-purpose processors. In the context of cryptocurrency mining, more efficient ASICs mean lower operational costs and higher profitability.
SINGAPORE, June 06, 2024 (GLOBE NEWSWIRE) -- Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for blockchain and high-performance computing, today announced that it entered into a share purchase agreement (the “Agreement”) with FreeChain Inc. (“Desiweminer”), a fabless crypto ASIC design company, on June 3, 2024 to acquire all of the issued and outstanding shares of Desiweminer for a consideration of 20 million Class A ordinary shares of the Company (the “Bitdeer Shares”). A portion of the Bitdeer Shares to be issued pursuant to the Agreement will vest in equal instalments over a period of five or seven years, subject to the terms and conditions therein. Additionally,
The strategic acquisition, which is subject to customary closing conditions, follows a rigorous ten-month due diligence period, during which Bitdeer thoroughly evaluated Desiweminer’s technology, engineering team, and supply chain. Desiweminer’s cutting-edge chip designs are highly complementary to those developed by Bitdeer and are ideally suited for advanced semiconductor processes at 4nm and below. With this acquisition, the Desiweminer team will join Bitdeer’s ASIC design team in Singapore, further strengthening the Company’s capabilities and accelerating its time to market. Products featuring integrated technologies are slated for imminent release.
“We are thrilled to welcome Desiweminer into the Bitdeer family. Desiweminer’s remarkable achievements in ASIC design and their proven track record, with nearly 30,000 high-performance machines in the market, make them one of the top ASIC design groups in the world,” said Linghui Kong, Chief Business Officer of Bitdeer. “Our ongoing and substantial investments into the ASIC business are a cornerstone of our strategy to drive innovation and excellence in the mining industry and deliver long-term value for our shareholders.”
Mr. Kong continued, “Integrating these advanced technologies will enhance our existing product lineup and accelerate research and development of our next generation ASICs, which will push the boundaries of what’s possible in ASIC technology and efficiency. Given our leadership team’s track record in the Bitcoin industry, we are well-positioned to disrupt and capture share in the multi-billion-dollar ASIC market over the coming years.”
About Bitdeer Technologies Group
Bitdeer is a world-leading technology company for blockchain and high-performance computing. Bitdeer is committed to providing comprehensive computing solutions for its customers. The Company handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter design and construction, equipment management, and daily operations. The Company also offers advanced cloud capabilities to customers with high demand for artificial intelligence. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, visit https://ir.bitdeer.com/ or follow Bitdeer on X @ BitdeerOfficial and LinkedIn @ Bitdeer Group.
Investors and others should note that Bitdeer may announce material information using its website and/or on its accounts on social media platforms, including X, formerly known as Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages investors and others to review the information it posts on the social media and other communication channels listed on its website.
About Desiweminer
Desiweminer is a Fabless crypto ASIC design company focused on the field of Bitcoin mining, dedicated to providing ESG-friendly, superior mining equipment, and solutions to the global mining community. With a focus on customized chip design and yield control, the company combines advanced circuit architecture and predictive yield technology to ensure high-performance products. Supported by a seasoned team with extensive experience in low-power design and supply chain management, Desiweminer excels in delivering technologically advanced solutions with rapid production capabilities, catering to a global market.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “look forward to,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in Bitdeer’s subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof. Bitdeer specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise. Readers should not rely upon the information on this page as current or accurate after its publication date.
Contacts
Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Bitdeer.ir@icrinc.com
Phone: +1 (212) 537-5825
Public Relations
Brad Burgess, SVP
ICR, LLC
Email: Bitdeer.pr@icrinc.com
Phone: +1 (212) 537-4056
FAQ
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