Tether to put $500 million into Bitcoin mining as part of expansion plans

Major stablecoin issuer Tether wants to pump $500 million into bitcoin mining as the company plans to become one of the biggest miners in the world.

The company is currently building bitcoin mining facilities in South America and Central America, with big plans for the USDT provider to contribute one percent of the BTC network's total computing power.

Tether to Bitcoin Mining

Tether, which dominates the market in the stable coin industry, is looking to make its mark in the bitcoin mining sector. In its recent earnings report, the company announced a cash profit of more than $3 billion.

In an interview with Bloomberg, Tether CEO Paolo Arduino revealed that the company will allocate $500 million to bitcoin mining operations over the next six months.

The funds will be used to build Tether's bitcoin mining facilities and invest in existing BTC mining businesses, which recently included a $609 million debt financing facility for European bitcoin miner Northern Data Group.

Tether's foray into BTC mining represents the company's efforts to diversify and could provide the company with an alternative way to generate profits. The stablecoin issuer is behind the largest stablecoin, USDT, which grew by $22 billion in market capitalization last year and will reach a new peak of $87 billion by November 2023.

Looking at one percent market share

According to its plan to become a major player in the Bitcoin mining industry, Arduino Tether wants to establish BTC mining facilities in Uruguay, Paraguay and El Salvador to acquire one percent of the total Bitcoin mining computing power. 40-70 MW.

Bitcoin miner Marathon Digital, which recently opened a mining project powered by renewable hydropower in Paraguay, contributes about four percent of the total computing power of the BTC mining network.

According to Arduino,

“We are committed to being a part of the Bitcoin mining ecosystem. We are very serious about expansions, building new distribution centers and new sites.

In addition, Tether is working to increase its live mining operations to 120 megawatts by the end of the year.

While the company seems ambitious, Arduino Tether is in no rush to become the world's largest miner, he said, adding, “For us, mining is something we have to learn and grow over time.”