- Tether is considering injecting $500 million into Bitcoin mining operations as part of the company’s plans to become one of the world’s largest miners.
- Tether CEO Paolo Ardoino announced that the company will allocate $500 million to Bitcoin mining activities in the next six months.
- Tether’s entry into BTC mining could be a sign of the company’s diversification efforts and may provide an alternative avenue for profit.
Stablecoin issuer Tether plans to allocate $500 million to Bitcoin mining as part of its expansion plans.
Tether Turns to Bitcoin Mining
Stablecoin issuer Tether is considering injecting $500 million into Bitcoin mining operations as part of the company’s plans to become one of the world’s largest miners. Currently constructing bitcoin mining facilities in South America and Central America, the firm, a USDT issuer, also has ambitious plans to contribute one percent to the total hash rate of the BTC network.
Tether, maintaining its dominance in the stablecoin industry, aims to make a mark in the Bitcoin mining sector as well. In a recent audit report, the company reported a cash surplus of over $3 billion. Paolo Ardoino, Tether’s CEO, announced in an interview with Bloomberg that the company will allocate $500 million to Bitcoin mining activities in the next six months.
The funds will be directed towards building Tether’s bitcoin mining facilities and investing in existing BTC mining operations, including a recent $609 million debt financing facility provided to European bitcoin miner Northern Data Group.
Tether’s entry into BTC mining could be a sign of the company’s diversification efforts and may provide an alternative avenue for profit. The stablecoin issuer is behind the largest stablecoin, USDT, whose market cap increased by $22 billion last year and surpassed $87 billion in November 2023.
Targeting 1% Market Share
As part of its plans to become a significant player in the Bitcoin mining industry, Ardoino stated that Tether is considering having one percent of the total bitcoin mining hash rate by establishing BTC mining facilities in Uruguay, Paraguay, and El Salvador, each with a capacity of 40-70 megawatts.
Marathon Digital, a Bitcoin mining giant launching a mining project in Paraguay powered by renewable hydro energy, makes up approximately one-fourth of the total hash rate of the BTC mining network. According to Ardoino, “We are committed to being part of the Bitcoin mining ecosystem. We are very serious about expanding, building new substations, and new sites.”
Tether is also evaluating a site aiming to increase the company’s direct mining operations to 120 megawatts by the end of the year and hopes to reach 450 megawatts by the end of 2025. The stablecoin issuer is also considering a site with a capacity of 300 megawatts.
Despite the seemingly ambitious efforts of the company, Ardoino emphasized that Tether is not in a hurry to become the world’s largest miner, stating, “Mining is something we need to learn and grow over time.
