Tether Ventures Into Bitcoin Mining with $500 Million Gamble

Tether is implementing measures to establish itself as a global leader in Bitcoin mining. A significant investment is being made by the $87 billion stablecoin company in an already fiercely competitive industry.

In the next six months, the company intends to acquire interests in other businesses and construct its mining facilities, according to an interview with Paolo Ardoino, the organization’s new CEO.

The expenditure is estimated to be around $500 million.

A portion of the $610 million financing facility that Tether extended to publicly traded Bitcoin mining company Northern Data AG this month after it acquired shares in the Frankfurt-based firm in September is incorporated into the investment.

USDT’s $87 billion reserve is utilized to manage U.S. Treasury bills and other assets; as of September 30th, Tether had accrued excess cash of approximately $3.2 billion.

The company invested over $800 million of its profits in industry research-related ventures and Bitcoin, according to a quarterly report of its financial statements that was released on October 31.

Ardoino stated that Tether is constructing Bitcoin miners with capacities ranging from 40 to 70 megawatts in El Salvador, Paraguay, and Uruguay.

Tether’s objective is to increase its portion of the total computing power required to operate the Bitcoin network to 1%. Ardoino declined to provide a specific timeframe for the accomplishment of this target.

This contrasts Marathon Digital Holdings, the largest publicly traded Bitcoin mining company, which holds an approximate 4% stake.