Tether Aims to Invest Half a Billion Dollar in Mining Ventures Over Next Six Months to Become a Top Miner
Tether, the company behind the world’s largest stablecoin USDT, aims to invest half a billion dollars to become one of the world’s leading Bitcoin miners.
Paolo Ardoino, the company’s incoming CEO, said in a recent interview that Tether plans to invest approximately $500 million over the next six months.
The company’s investment strategy includes constructing its own mining facilities and acquiring stakes in other mining companies.
The new venture represents a significant departure from Tether’s primary business of running the USDT stablecoin, which maintains a one-to-one value with the US dollar.
Tether generates revenue by managing a reserve of US Treasury bills and other assets backing the USDT stablecoin.
As of September 30, the company had accumulated around $3.2 billion in excess cash.
Tether has already allocated over $800 million this year for investments in various research-related fields, including Bitcoin.
Bitcoin mining is an energy-intensive process that validates transactions on the blockchain network.
Miners use specialized computers to process transactions and, in return, receive new Bitcoin tokens.
Tether plans to establish Bitcoin mining facilities in Uruguay, Paraguay, and El Salvador, with each site having a capacity ranging between 40 and 70 megawatts.
“A 1% market share would likely make Tether among the world’s 20 largest Bitcoin mining companies,” said Jaran Mellerud, chief executive at Bitcoin mining data and research firm MinerMetrics.
“Given Tether’s importance in the crypto ecosystem and its financial muscle, its market share over time will likely grow far beyond its initial 1% goal.”
Tether aims to reach 120 megawatts of mining capacity through its own operations by the
