Tether Holdings ventures into Bitcoin mining, investing $500 million to establish operations in Uruguay, Paraguay and El Salvador.
USDT stablecoin provider Tether is venturing into Bitcoin mining, aiming to position itself as a major crypto-miner in this highly competitive field. The company will invest approximately $500 million in the next half-year, revealed Paolo Ardoino, the soon-to-be CEO. This ambitious move includes the construction of new mining facilities and acquiring stakes in existing companies.
Recently, Tether extended a $610 million credit line to Northern Data AG, a Frankfurt-based Bitcoin mining firm, and even purchased significant shares in the company. This strategic investment is part of Tether’s broader plan to diversify its revenue streams beyond its primary business of managing USDT stablecoin.
Mining operations in South America
As a part of this new venture, Tether is establishing mining operations in Uruguay, Paraguay and El Salvador. Each location will boast capacities ranging from 40-to-70 megawatts. Ardoino, while not specifying a timeline, has set an ambitious target for Tether to achieve 1% of the total computational power of the Bitcoin network. This goal is noteworthy, especially when compared to Marathon Digital Holdings, the largest public Bitcoin mining company, which currently holds about 4%.
By the end of 2023, Tether aims to reach a direct mining capacity of 120 megawatts, with projections to expand up to 450 megawatts by the end of 2025. Ardoino also mentioned to Bloomberg that around $150 million is earmarked for direct mining initiatives, some of which are still being allocated to new sites. This expansion represents a significant shift for Tether as it looks to establish a new foothold in the crypto landscape.
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