The issuer of top stablecoin Tether (USDT) is reportedly making hefty investment to become one of the world’s largest Bitcoin (BTC) miners.
According to a new report from Bloomberg, Tether Holdings Ltd. is planning to spend about $500 million in the next six months to jump into the Bitcoin mining sector.
The investment is part of the $610 million credit facility that Tether issued to Bitcoin mining company Northern Data AG after acquiring shares in the Germany-based firm.
Incoming Tether CEO Paolo Ardoino says the amount will be used to construct the company’s own mining facilities and to take stakes in other companies.
“We are committed to being part of the Bitcoin mining ecosystem. When it comes to the expansions, building new substations and new sites, we are taking them extremely seriously.”
Ardoino says the $87 billion stablecoin operator is building Bitcoin mines in Uruguay, Paraguay and El Salvador, each with a capacity ranging between 40 and 70 megawatts. The goal is for Tether to increase its share in the Bitcoin network’s total computing power to 1%.
Bitcoin mining data and research firm MinerMetrics CEO Jaran Mellerud says Tether’s targeted market share will make the company one of the world’s 20 largest Bitcoin mining operators.
“Given Tether’s importance in the crypto ecosystem and its financial muscle, its market share over time will likely grow far beyond its initial 1% goal.”
Ardoino says Tether’s own direct mining operation is expected to reach 120 megawatts by the end of 2023 and 450 megawatts by the end of 2025. The company also set aside around $150 million for mining opportunities where it is directly involved.
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