Cryptocurrency Information Bureau News: Bitdeer raises $3 million! Strengthening mining and AI businesses! Is this an investment in the future? #Bitcoin #AI #Bitdeer
Video explanation
The future of Bitcoin mining and AI is accelerating?! Bitdeer successfully raises large amount of funds!
Hello, this is John from Blockchain Navigator!
Today, we have some big news to share with you about the world of digital currencies, and in particular the technology behind Bitcoin. Bitdeer Technologies Group, a major Bitcoin mining company based in Singapore, has succeeded in raising a whopping amount of funds: about 3 million dollars (more than 3000 billion yen in Japanese yen! *510 dollar is converted at 1 yen)!
Many people may be wondering, "Bitcoin mining?" "Fundraising?" "What does that have to do with us?" But don't worry! If you read this article, you should be able to clearly understand what this news means and how it could affect our future. We will explain the technical terms as simply as possible, so please relax and read on!
First of all, what kind of company is Bitdeer?
First, let's briefly introduce Bitdeer, the main character of this article. Bitdeer is one of the world's leading companies that specializes in the process of "mining" cryptocurrencies such as Bitcoin (a type of digital currency that can be used on the Internet and maintains its value without relying on a specific country or bank). Its headquarters are in Singapore.
When you hear the word "mining," it sounds kind of difficult, right? Let's take a closer look at it in the next section!
What does Bitcoin mining do?
Some of you may have heard the term "Bitcoin mining" but don't really understand it.
Bitcoin is based on a technology called "blockchain," which allows computers around the world to cooperate to manage transaction records without a central administrator like a bank. These transaction records are compiled into new "blocks" at regular intervals and linked to previous blocks like a chain. The process of approving this new block requires the first solving of an extremely complex calculation problem.
The person (or company) who participates in the competition to solve this calculation problem and is the first to do so will be given a new Bitcoin as a reward. This series of tasks is similar to digging up new gold in a gold mine, so the name "Mining" It is called. Bitdeer is conducting this mining using large-scale facilities and high-performance computers.
How did they raise that much money? What are "convertible bonds"?
Bitdeer used the funds to raise $3 million this time:Convertible bonds" This is how it works.
A "corporate bond" is like an "IOU" issued by a company to borrow money. Investors lend money to a company by buying a corporate bond, and the company pays interest until maturity (the deadline for repaying the money), and then repays the principal at maturity.
The difference between "convertible bonds" and ordinary corporate bonds is that if certain conditions are met, the company's "Stock (the right to own a part of a company)The Bitdeer convertible bonds will mature in 2031 and pay an annual interest rate of 4.875%. Investors will have the right to convert their shares into Bitdeer Class A shares in the future at a price 25% higher than the current stock price (this is called a "premium"). If the company grows and the stock price rises, this will be an attractive option for investors.
What will the money raised be used for? Investing in the future!
So, what exactly is Bitdeer planning to do with all this money? According to the announcement, there are three main purposes:
- Further strengthening the Bitcoin mining business:
It appears that they will be investing in equipment and strengthening their operational structure in order to further expand the scale of their current Bitcoin mining operations and produce Bitcoin more efficiently. - ASIC machine development:
"ASIC Machine"ASIC" is a computer specially designed to perform specific calculations (in this case, the calculations required for bitcoin mining) at ultra-high speeds. It stands for "Application-Specific Integrated Circuit." By developing their own high-performance ASIC machines, they hope to gain an advantage in the mining race and increase efficiency. - Expanding AI infrastructure:
Recently, we often hear the word "AI" in the news. In order to develop AI technology, we need many high-performance computers that can process huge amounts of data. Bitdeer plans to focus on developing and expanding the infrastructure (basic facilities and systems) to support this AI technology. This means that the know-how of operating high-performance computers cultivated in mining can also be utilized in the AI field.
What does this news mean for us?
The fact that a large company like Bitdeer is investing huge amounts of money to strengthen its mining operations and AI infrastructure is noteworthy for several reasons.
- Improving Bitcoin network stability:
An increase in the number of mining operators and their activity could lead to improved security and stability of the entire blockchain network, which verifies and approves Bitcoin transaction records. - Accelerating technological development:
The race to develop high-performance ASIC machines may spur advances in semiconductor technology and computer technology as a whole. - Contribution to the development of AI technology:
As infrastructure for AI expands, it will become easier for more companies and researchers to work on AI development, which may speed up the emergence of new AI services that enrich our lives.
The world of digital currencies like Bitcoin and the world of cutting-edge technology called AI. It's very interesting to see how these two worlds are linked by a common thread of high-performance computers and continue to develop while influencing each other.
A word from John
Well, even so, 3 million dollars is a really amazing amount! Bitcoin mining and AI may seem like slightly different fields at first glance, but they both have in common the fact that they require "a lot of computing power". Bitdeer's investment in both of these fields may be a very strategic move with an eye on the future of the digital society. We can't take our eyes off future developments!
This article is based on the following original articles and is summarized from the author's perspective:
Bitdeer Raises $330M to Expand Bitcoin Mining and AI Operations