Tether is Investing $500M in BTC Mining
Tether, known for its stablecoin operations, is investing $500 million in Bitcoin mining expansion, with plans to set up mining operations.
Tether is embarking on a significant expansion into the Bitcoin mining industry, with Paolo Ardoino, who is soon to become the company's CEO, leading the charge.
The company, known for its stablecoin operations, is planning to invest around $500 million in the upcoming six months. This investment will go towards building new mining facilities and supporting existing mining operations. Ardoino has revealed plans for Tether to set up mining operations in Uruguay, Paraguay, and El Salvador, aiming to contribute about 1% to the Bitcoin mining network's total computing power. The capacity of these new facilities is expected to be between 40 and 70 megawatts (MW).
We're quite close to add another extremely powerful piece of the puzzle for @Tether_to ecosystem.
Total of 5 mind-blowing projects (and counting) for 2024.
Couple of these could obliterate some popular Web2 centralized services for good.
Pure Real World Ecosystem aka "Things… — Paolo Ardoino ???? (@paoloardoino) November 12, 2023
Part of this investment strategy includes a significant financial commitment to the German mining company Northern Data Group. This move is part of a $610 million debt financing deal that Tether announced earlier. It represents a continuation of Tether's pattern of strategic investments this year, including a previous investment in Northern Data Group to support artificial intelligence projects.
Ardoino also shared ambitious plans for Tether's direct mining operations. The company aims to increase its mining capacity to 120 MW by the end of this year and hopes to reach up to 450 MW by the end of 2025.
Additionally, Tether is considering the development of a 300-MW facility. An interesting aspect of their strategy involves setting up mining facilities inside movable containers, allowing for flexibility in response to changes in electricity pricing. Ardoino commented on the company's approach to mining, stating that:
“Mining for us is something that we have to learn and grow over time. We are not in a rush to become the biggest miner in the world.”
Ardoino is set to take the helm as Tether’s CEO in December while retaining his position as the chief technical officer at Bitfinex, Tether's parent company. This leadership change was part of the company's strategic plans announced in October.