Bitdeer has announced the acquisition of Desiweminer, a fabless crypto ASIC design firm, in an all-stock deal that is primarily worth $140m. Crucially, Bitdeer is a technology company specializing in blockchain and high-performance computing, which is headed by Jihan Wu. Earlier this month, Bitdeer raised $150 million in funding from Tether, a firm that specializes in stablecoins.
Bitdeer to Acquire Desiweminer for 20 Million Shares
Desiweminer signed a share purchase agreement with Bitdeer on June 3, 2024. Under the terms of the deal, all of the issued and outstanding shares of Desiweminer will be purchased by Bitdeer for 20 million Bitdeer Class A ordinary shares.
Some of these shares will be exercisable in equal amounts over a period of five to seven years, depending on some factors. Also, some of the shares issued to certain sellers are restricted from sale for six months from the closing of the transaction. In addition to this, other shares are restricted from sale for twelve months from the closing of the transaction.
This strategic acquisition came after Bitdeer undertook ten-month due diligence of Desiweminer’s technology, engineering talent, and sourcing network. Desiweminer’s proprietary chips are also compatible with these and other complex semiconductor processes at 4nm and below, aligning well with Bitdeer’s own chip designs. This step will bring Desiweminer’s team into Bitdeer’s ASIC design team located in Singapore, strengthening their team. New products with these integrated technologies could be launched shortly.
Bitdeer Aims to Redefine ASIC Market with Desiweminer Acquisition
Linghui Kong, the Chief Business Officer of Bitdeer, was excited about the acquisition. He said that Desiweminer has already made impressive strides in ASIC design and have shown results. They currently have nearly 30,000 efficient machines in the market. Kong said that the acquisition is one of the major initiatives of Bitdeer to advance the excellence of the mining industry for the creation of shareholders’ value.
Kong also added that incorporating Desiweminer’s sophisticated technologies will complement the existing Bitdeer product offerings. They will also advance the development of new generation ASICs. These advancements are anticipated to redefine the future developments of ASIC technology and performance. Currently fronted by a leadership team with deep roots in Bitcoin, its goal is to redefine and dominate the multi-billion-dollar ASIC market in the coming years.
