Tether Investing $500 Million in bitcoin Mining
Tether, the major stablecoin issuer, is planning to invest $500 million into bitcoin mining operations. This is part of the company’s strategy to become one of the largest miners globally.
Expansion into bitcoin Mining
Tether, a dominant player in the stablecoin industry, is looking to expand into the bitcoin mining sector. The company has recently reported a cash surplus of over $3 billion in its attestation report.
Tether’s Diversification Plan
Tether’s CEO, Paolo Ardoino, revealed in an interview with Bloomberg that the firm will allocate $500 million to bitcoin mining activities over the next six months. This fund will go towards constructing Tether’s bitcoin mining facilities and investing in existing BTC mining businesses.
Tether’s ambition and potential profit growth
Tether’s plans to venture into BTC mining signal the company’s effort to diversify and explore alternative avenues for profit-making. With the market cap of its stablecoin, USDT, increasing by $22 billion over the past year, Tether is aiming to become a significant player in the bitcoin mining industry.
Aiming for One Percent Market Share
Tether is looking to establish BTC mining facilities in Uruguay, Paraguay, and El Salvador, with each facility having a capacity of 40-70 megawatts. The goal is to attain one percent of the total bitcoin mining computation power.
As part of its expansion plan, Tether aims to increase its direct mining operations to 120 megawatts by the end of the year and hopes to reach 450 megawatts by the end of 2025. Tether is also considering a 300-megawatt capacity site.
Despite the ambitious efforts, Ardoino emphasized that Tether is not in a rush to become the world’s largest miner, stating, “Mining for us is something that we have to learn and grow over time.”
### News source: cryptopotato.com