Tether’s Big Bet, $500 Million for a Bitcoin Mining Future
- Tether, the major stablecoin issuer, plans a substantial $500 million investment to enter the Bitcoin mining arena.
- Over the next six months, Tether intends to build its mining facilities and invest in existing mining firms to solidify its presence in the Bitcoin mining ecosystem.
- Tether is strategically establishing bitcoin mines in El Salvador, Uruguay, and Paraguay as part of its mining venture.
- By the end of 2023, Tether aims for a mining capacity of up to 120 megawatts, with a more substantial goal of reaching 450 megawatts by the end of 2025.
- Despite significant resources, Tether emphasizes a gradual learning and growth approach to mining and expresses no rush to become the largest miner globally.
Tether, the issuer of the largest US dollar stablecoin is making bold moves into the world of Bitcoin mining.
According to a recent report by Bloomberg, the company is set to invest a whopping $500 million in establishing itself as a key player in the Bitcoin mining ecosystem.
A Strategic Investment
Incoming CEO Paolo Ardoino revealed that Tether plans to allocate this substantial sum over the next six months.
The strategy involves not only building its mining facilities but also taking stakes in existing mining firms.
In an interview with Bloomberg, Ardoino emphasized their commitment to being an integral part of the Bitcoin mining landscape.
“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.”
Tether’s primary business revolves around running the USDT stablecoin, which is pegged one-to-one with the US dollar.
The company, with approximately $3.2 billion in excess cash as of September, generates revenue by managing assets in its multi-billion dollar reserves.
As part of its ambitious mining venture, Tether is strategically establishing bitcoin mines in El Salvador, Uruguay and Paraguay.
The company envisions expanding its share of the total computing power required to run the Bitcoin network to 1%.
By the end of 2023, Tether aims to achieve a capacity of up to 120 megawatts across its mining operations, with a more substantial goal of reaching 450 megawatts by the end of 2025.
For context, the largest public Bitcoin mining company, Marathon Digital Holdings, currently contributes about 4% of the total computing power.
Despite their considerable resources, Ardoino expressed a measured approach:
“Mining for us is something that we have to learn and grow over time. We are not in a rush to become the biggest miner in the world.”