Tether Expands into Bitcoin Mining With $500M Investment

 Tether, a company specializing in stablecoins, is preparing for a significant expansion into Bitcoin mining, with a planned investment of approximately $500 million over the next six months. In an interview with Bloomberg, Paolo Ardoino, the expected CEO of Tether, shared the company's intentions to construct mining facilities and invest in other miners. The focus of this expansion will be on establishing mining sites in Uruguay, Paraguay, and El Salvador, with the goal of increasing Tether's computing power to represent 1% of the BTC mining network.

These new facilities will have a capacity ranging from 40 to 70 megawatts.

This mining investment is part of Tether's recent $610 million debt financing facility, which was extended to German miner Northern Data Group. Tether has been actively increasing its loans throughout the year and had previously made a strategic investment in Northern Data Group to support initiatives related to artificial intelligence.

Ardoino outlined Tether's mining objectives, aiming to achieve 120 megawatts of direct mining operations by the end of this year and an impressive 450 megawatts by the end of 2025. The company is also considering the establishment of a 300-megawatt facility and plans to set up its mining infrastructure inside containers that can be relocated based on fluctuations in electricity prices. Ardoino emphasized that Tether's approach to mining is gradual, stating, "We are not in a hurry to become the largest miner in the world."

In December, Paolo Ardoino will assume the role of Tether's CEO while maintaining his position as the chief technical officer of parent company Bitfinex, as previously announced in October.

Source : Yahoo crypto / Nov 17, 2023