Tether, having already consolidated its position as the undisputed leader in the stablecoin market, is entering a new phase by investing significantly in Bitcoin mining. With a cash surplus in excess of $3 billion, the company plans to allocate a massive $500 million to mining activities over the next six months.
Tether injects $500 million for its new Bitcoin mining investment strategy
Although Tether has consolidated its dominant position in the stablecoin sector, its sustained interest in bitcoin has not gone unnoticed. Around three months ago, Coinpri had postponed that this USDT issuer held the 11th largest bitcoin (BTC) portfolio. The latest information now indicates that Tether is looking to expand its influence by getting into Bitcoin mining, demonstrating its attraction to the queen of cryptos.
Paolo Ardoino on Tether’s new CEO shared this vision at a interview with Bloomberg, indicating that the company plans to allocate 500 million to Bitcoin mining activities over the next six months.
These funds will be deployed for the construction of Bitcoin mining facilities in South and Central America, as well as for investments in existing mining companies, including Northern Data Groupa European player in Bitcoin mining, which recently benefited a loan of $609 million from Tether.
Tether’s ambitious plans for Bitcoin mining
As part of its ambitious project, Tether aims to contribute 1% of the total computing power of the BTC mining network. To achieve this first goal as a contributor to the decentralized bitcoin network, significant resources are required. Ardoino then declared that plans to set up mining facilities in Uruguay, Paraguay and El Salvador, each with a capacity of 40 to 70 megawatts.
The company also plans to increase its direct mining operations to 120 megawatts by the end of the year, with a bold vision to reach 450 megawatts by the end of 2025, including a site with an impressive 300 megawatt capacity.
Paolo Ardoino pointed out that Tether has no intention of quickly becoming the world’s largest miner, stressing that mining is a field that requires continuous learning and development over time.
Conclusion
With these recent revelations, it is legitimate to anticipate a future where Tether, beyond maintaining its predominant position in the stablecoin universe, could also position itself as a major player in the Bitcoin mining industry. Will it become a validator of other blockchains in the future?
Do you think Tether will continue to diversify into other areas of blockchain?
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
