The Move into Bitcoin Mining by Tether
Tether, the issuer of the stablecoin USDT, is reportedly set to invest around $500 million within the next six months to enter the Bitcoin mining sector and aims to become one of the world’s largest Bitcoin miners according to Bloomberg.
This significant investment is part of a $610 million credit facility that Tether gave to Bitcoin mining company Northern Data AG following its acquisition of shares in the firm. The company’s incoming CEO, Paolo Ardoino, confirmed that the money would be used to construct Tether’s own mining facilities and to take stakes in other companies.
Tether plans to build Bitcoin mines in Uruguay, Paraguay, and El Salvador, each with a capacity ranging between 40 and 70 megawatts, with the goal of increasing its share in the Bitcoin network’s total computing power to 1%.
Tether’s Ambitious Mining Goals
CEO Paolo Ardoino added that Tether’s direct mining operation is expected to reach 120 megawatts by the end of 2023 and 450 megawatts by the end of 2025. With its financial muscle and importance in the crypto ecosystem, MinerMetrics CEO Jaran Mellerud predicts that Tether’s market share will likely grow far beyond the initial 1% goal.
Hot Take
Tether’s move into Bitcoin mining is a game-changer that could influence the power dynamics within the industry, affecting Bitcoin’s stability as one of the most valued cryptocurrencies. Now, as one of the world’s largest Bitcoin mining operators, Tether’s dominance in the market is poised to grow even further, potentially shaping the future of the crypto world more significantly than ever before.
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