Tether Holdings Enters the Bitcoin Mining Industry
Tether Holdings Ltd., a major player in the stablecoin market, is now venturing into the Bitcoin mining sector. The company, valued at $87 billion, plans to invest approximately $500 million over the next six months. This amount will be allocated towards building its own Bitcoin mining facilities and acquiring stakes in existing mining companies.
Expansion Strategy of Tether in Bitcoin Mining
This initiative marks a significant turning point for Tether, primarily known for managing the USDT stablecoin. Tether’s entry into the Bitcoin mining sector, supported by its considerable financial resources, has the potential to disrupt the competitive landscape for the limited Bitcoin supply. Furthermore, this move provides Tether with an alternative path to diversify its revenue streams.
Ambitious Goals of Tether for 2024
Paolo Ardoino revealed that Tether is establishing Bitcoin mining operations in Uruguay, Paraguay, and El Salvador, each with a capacity of 40 to 70 megawatts. The company aims to increase its contribution to the total computing power of the Bitcoin network to 1%, although Ardoino did not specify a timeline to achieve this goal.
Tether plans to expand its direct mining operations to 120 megawatts by the end of 2023 and aims for up to 450 megawatts by 2025. The company has set aside approximately $150 million for mining investments, with ongoing deployment to new sites.