Leading stablecoin issuer Tether, the company behind USDT, is moving to become one of the world’s leading Bitcoin miners, making a hefty investment in the competitive sector through the construction of its own mining facilities and taking stakes in other firms.
According to Tether’s incoming Chief Executive Officer Paolo Ardoino, the company plans to spend around $500 million over the next six months as part of its push to become a top Bitcoin miner.
The investment includes part of a $610 million credit line that Tether gave to publicly-traded Bitcoin mining firm Northern Data this month, after buying some of its shares in September.
Tether currently earns money by managing USDT’s $87 billion reserve, which consists of US Treasury bills and other assets. As of September 30, the firm had accumulated around $3.2 billion in surplus cash, and invested $800 million of its profits in various fields related to industry research.
According to Ardoino, Tether is setting up Bitcoin mining sites in Uruguay, Paraguay, and El Salvador. The sites will have a power capacity of 40 to 70 megawatts each, as Tether plans to grow its share of the Bitcoin hashrate – the computational power supporting the network – to 1%.
By the end of 2023, Tether plans to have 120 megawatts of power capacity for its own direct mining operations, and projects it could reach 450 megawatts by the end of 2025.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/nov/17/
