Stablecoin issuer Tether is making a major push into bitcoin mining with the goal of dominating this highly stacked market.
The company, according to new CEO Paolo Ardoino, intends to invest $500 million in the next six months. The construction of new mining facilities and the acquisition of shares in existing mining companies are two aspects of this bold expansion.
To rank among the top bitcoin mining companies worldwide, Tether has made some pretty significant strides.
The company’s proposed $500 million investment is a big move that could propel the $87 billion stablecoin operator to new heights in a highly competitive market like cryptocurrency mining.
JUST IN: Tether plans to spend $500 million to become one of the largest in the world bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin miners
With mines in Uruguay, Paraguay and El Salvador, they aspire to grow their share to 1% of the total bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin hash rate pic.twitter.com/S0NIUdZU30
– bitcoin News (@BitcoinNewsCom) November 16, 2023
Ardoino, who will become CEO of Tether in December, emphasized that mining is a gradual process of learning and growth for his team. He clarified that there is no urgency to become the largest miner globally.
Tether becomes a miner
The approach underlines a commitment to a measured and informed strategy rather than a hasty quest to dominate the mining landscape, he said, as he reflected on a focus on sustainable development and long-term success in the mining sector.
Tether recently purchased a sizable stake in Northern Data AG, a Frankfurt-based bitcoin mining operation, and issued a $610 million line of credit to the company. Tether’s broader initiatives to diversify beyond its core USDT stablecoin business include this strategic position.
“Mining for us is something that we have to learn and grow over time. “We are in no rush to become the largest mining company in the world,” Ardoino said.
Tether’s goal is to establish mining operations in strategically significant regions, such as El Salvador, Paraguay and Uruguay.
In an effort to improve its computational capacity to reach 1% of the bitcoin mining network, the organization is undertaking this effort.
Ardonio outlined the corporate strategy of building mining facilities in the chosen countries, with a capacity that will range between 40 and 70 megawatts (MW).
bitcoin retreats to the $36K territory. Chart: TradingView.com
Tether plans to increase its direct mining capacity to 450 megawatts by the end of 2025, with a goal of 120 megawatts by the end of 2023.
Aboutbtc-wants-to-become-a-major-bitcoin-miner?utm_source=telegram&utm_content=crypto&utm_medium=social#xj4y7vzkg” target=”_blank” rel=”noopener nofollow”> 150 million dollars are reserved for direct mining initiatives, some of which are currently being distributed to new sites, according to Ardoino, who spoke to Bloomberg.
We are pretty close to adding another extremely powerful piece of the puzzle to @Tether_to ecosystem.
Total of 5 amazing projects (and counting) by 2024.
A couple of these could eliminate some popular centralized services from Web2 forever.Pure real-world ecosystem, also known as “Things…
—Paolo Ardoino (@paoloardoino) November 12, 2023
Tether aims big for 2024
With a total of five incredible initiatives planned for 2024 and counting, Ardonio said they are on the verge of completing the Tether ecosystem with another “powerful piece of the puzzle.”
Some of them, according to Ardonio, have the potential to permanently demolish a number of well-known Web2 centralized services.
The company has already said it intends to use a self-custodial wallet to store up to 15 percent of its profits in bitcoin. With 2% of its existing assets in bitcoin, Tether also announced a first-quarter net profit of $1.48 billion this year.
Meanwhile, miners are taking the opportunity to profit from bitcoin‘s recent surge as the cryptocurrency is set to halve in April 2024.
Mining is an energy-intensive process that has seen a rebound in activity, although its profitability has not yet returned to its 2021 peak.
Since early November, earnings per unit of processing power have risen from $70 to more than $81, the latest data shows.
Featured image from Pixabay
