Stablecoin issuer Tether is contributing significantly to the expansion of Bitcoin mining in a bid to dominate this fiercely competitive market.Thank you for reading this post, don't forget to subscribe!
As per the newly appointed CEO Paolo Ardoino, the company is aiming to allocate $500 million within the next six months. This bold expansion encompasses constructing new mining facilities and acquiring stakes in existing mining enterprises.
Tether has made noteworthy strides towards positioning itself among the leading Bitcoin mining firms globally.
The proposed $500 million investment represents a major leap that could elevate the $87 billion stablecoin operator to new heights in the intensely competitive cryptocurrency mining sector.
JUST IN: Tether intends to invest $500 million to establish itself as one of the world’s largest #Bitcoin miners 👀
– Bitcoin News (@BitcoinNewsCom) 16 November 2023
Ardoino, set to assume the role of Tether’s CEO in December, stressed that mining is a gradual process involving learning and growth for his team. He emphasized that the priority is not to hastily become the largest miner globally.
The Tether mining initiative
He underscored that this approach reflects a dedication to a deliberate and well-informed strategy, prioritizing sustainable growth and long-term success in the mining sector rather than a rush to dominate the landscape.
Tether recently acquired a significant stake in Northern Data AG, a Frankfurt-based Bitcoin mining operation, and provided the company with a $610 million line of credit. This strategic positioning is part of Tether’s broader endeavor to diversify beyond its core USDT stablecoin business.
“For us, mining is an aspect that requires gradual learning and development over time. There is no rush for us to become the largest miner globally,” Ardoino stated.
Tether aims to establish mining facilities in strategically vital regions such as El Salvador, Paraguay, and Uruguay.
With the goal of increasing its computational capacity to attain 1% of the Bitcoin mining network, the organization is actively pursuing this objective.
Ardonio outlined a corporate strategy to build mining facilities in selected countries with capacities ranging from 40 to 70 megawatts (MW).
Bitcoin has retraced to the $36K zone. Chart: tradingview.com
Tether plans to elevate its direct mining capacity to 450 MW by the end of 2025, targeting 120 MW by the end of 2023.
According to Ardoino, who spoke to Bloomberg, approximately $150 million has been allocated for the direct mining initiative, with some already being deployed to new sites.
We’re on the verge of adding another extremely impactful element to the @Tether_to Ecosystem.
A total of 5 astounding projects for 2024 (and more).
These have the potential to put an end to several dominant Web2 centralized services indefinitely.
An entirely real-world ecosystem aka “things…”
– Paolo Ardoino 🍐 (@paoloardoino) 12 November 2023
Tether’s ambitious target by 2024
Ardonio revealed that they are on the brink of completing the Tether ecosystem with another “impactful element,” with a total of five remarkable initiatives planned for 2024 and more in the pipeline.
According to Ardonio, some of these initiatives have the potential to permanently disrupt numerous prominent Web2 centralized services.
The company has announced its intention to store up to 15% of its earnings in bitcoin using a self-custodial wallet. With 2% of its current assets held in Bitcoin, Tether also disclosed a Q1 net profit of $1.48 billion this year.
Meanwhile, miners are capitalizing on the opportunity to profit from Bitcoin’s recent surge as the cryptocurrency’s “halving” event is scheduled for April 2024.
Mining is a resource-intensive process that has witnessed a surge in activity, although its profitability has not yet returned to its 2021 peak.
Recent data indicates that earnings per unit of processing power have risen from $70 to over $81 since the start of November.
Featured image from Pixabay