The issuer of the popular stablecoin Tether (USDT) is reportedly making a significant investment to become one of the world’s largest Bitcoin (BTC) miners. Tether Holdings Ltd. is planning to allocate approximately $500 million in the next six months to enter the Bitcoin mining sector, as per a new report from Bloomberg.
This investment is part of a $610 million credit facility that Tether issued to Bitcoin mining company Northern Data AG after acquiring shares in the Germany-based firm. Paolo Ardoino, the incoming CEO of Tether, shared that the investment will be used to construct the company’s own mining facilities and to take stakes in other companies involved in Bitcoin mining.
Ardoino emphasized Tether’s commitment to the Bitcoin mining ecosystem, stating, “We are committed to being part of the Bitcoin mining ecosystem. When it comes to the expansions, building new substations and new sites, we are taking them extremely seriously.”
As part of its investment, Tether is building Bitcoin mines in Uruguay, Paraguay, and El Salvador, with each having a capacity ranging between 40 and 70 megawatts. The company aims to increase its share in the Bitcoin network’s total computing power to 1%. Mining data and research firm MinerMetrics CEO Jaran Mellerud added that Tether’s targeted market share would make the company one of the world’s 20 largest Bitcoin mining operators.
Ardoino further elaborated that Tether’s direct mining operation is expected to reach 120 megawatts by the end of 2023 and 450 megawatts by the end of 2025. The company has also set aside around $150 million for mining opportunities where it is directly involved.
Tether’s expansion into Bitcoin mining signifies its intent to play a larger role in the cryptocurrency ecosystem. By increasing its mining capacity, Tether aims to bolster its position as a key player in securing and validating Bitcoin transactions on the blockchain.
This strategic move by Tether also highlights the growing interest and investment in the Bitcoin mining sector. As the demand for Bitcoin continues to rise and the network’s computing power becomes more critical, various entities are looking to capitalize on the rewards offered by mining Bitcoin.
Tether’s substantial investment is expected to further shape its role in the cryptocurrency market, potentially giving it a stronger foothold in the industry. The company’s substantial financial backing and commitment to expanding its mining operations indicate a long-term dedication to supporting the Bitcoin network and cryptocurrency ecosystem.
Moreover, Tether’s involvement in Bitcoin mining could lead to significant shifts in the landscape of the industry. With its financial muscle and influence, Tether’s market share may continue to grow beyond its initial 1% goal, potentially solidifying its position as a major player in the Bitcoin mining sector.
As Tether’s expansion plans unfold, the company’s role in shaping the future of Bitcoin mining and the wider cryptocurrency market is poised to become more prominent. With substantial resources at its disposal, Tether’s foray into Bitcoin mining has the potential to significantly impact the industry and further cement its position as a driving force in the rapidly evolving cryptocurrency space.