Tether Eyes BTC Mining Dominance with $500M Investment

Tether, the renowned stablecoin firm, is gearing up for a significant foray into Bitcoin mining, under the leadership of its soon-to-be CEO, Paolo Ardoino. In a strategic move to bolster its presence in the cryptocurrency mining sector, Tether is reportedly planning to invest approximately $500 million over the next six months. This investment will primarily focus on establishing new mining facilities and enhancing partnerships with existing miners.

Paolo Ardoino, in an interview with Bloomberg, shared insights into Tether’s ambitious expansion plans. The company aims to establish its mining operations in various South American countries, including Uruguay, Paraguay, and El Salvador. These new facilities are expected to significantly boost Tether’s computing power, targeting 1% of the entire BTC mining network. The planned sites are projected to have a substantial capacity, ranging between 40 and 70 megawatts (MW).

This expansion into Bitcoin mining is not Tether’s first venture into supporting technological advancements in the sector. Earlier this month, Tether announced a $610 million debt financing facility to the German mining company, Northern Data Group. This move aligns with Tether’s pattern of increasing investments this year, including a strategic investment in Northern Data Group back in September to support artificial intelligence projects.

Ardoino elaborated on Tether’s roadmap for scaling up its direct mining operations. By the end of the year, the company aims to enhance its mining capacity to 120 MW and further expand it to 450 MW by the end of 2025. Additionally, Tether is exploring the possibility of establishing a 300-MW facility. A notable aspect of Tether’s strategy involves setting up its mining operations within movable containers, allowing for flexibility and adaptability in response to fluctuating electricity prices.

In his statement, Ardoino emphasized a measured approach to Tether’s expansion in the mining sector: “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 assume the role of Tether’s CEO in December while retaining his position as the chief technical officer of Bitfinex, Tether’s parent company. This leadership transition, announced in October, marks a new chapter for Tether as it ventures into the competitive realm of Bitcoin mining with substantial investments and strategic planning.