Key Points:
According to Bloomberg, Paolo Ardoino, the incoming CEO, revealed that Tether Bitcoin mining investment involves constructing the company’s mining facilities and acquiring stakes in other companies. This includes a portion of the $610 million credit facility extended to Bitcoin mining firm Northern Data AG, in which Tether acquired shares in September.
Ardoino emphasized Tether‘s commitment to being part of the Bitcoin mining ecosystem, signaling a significant shift from its primary stablecoin operations. Tether aims to establish Bitcoin mines in Uruguay, Paraguay, and El Salvador, with each site boasting a capacity between 40 and 70 megawatts.
The company’s goal is to achieve 1% of the total computing power driving the Bitcoin network, a milestone Ardoino refrained from specifying a timeframe for. In comparison, Marathon Digital Holdings, the largest public Bitcoin mining company, currently contributes around 4%.
By the end of 2023, Tether anticipates reaching 120 megawatts across its direct mining operations, with a projection of scaling up to 450 megawatts by the close of 2025. The company has allocated approximately $150 million for mining opportunities directly involving Tether, with funds still being deployed across new sites.
Tether Bitcoin mining investment not only signifies Tether’s diversification beyond its stablecoin business but also introduces a significant player with deep pockets to the competitive Bitcoin mining sector. The entrance of Tether into Bitcoin mining could potentially impact the competition for the cryptocurrency’s limited token supply and broaden the revenue streams for the stablecoin giant.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Canada extends crypto compliance deadline to the end of 2024, giving exchanges more time to…
This article will explore which cryptos are considered securities, and how you can navigate the…
Score a 50% bonus on BDAG purchases! Explore how BlockDAG's presale exceeded $77M, delve into…
This is the most thrilling time for every crypto enthusiast, and for good reason, there…
Spot Bitcoin ETF inflows hit $494 million on September 27 with over $1 billion this…
Binance founder CZ marked his return to social media with a tweet greeting the crypto…
This website uses cookies.