Tether Holdings Ltd., renowned for issuing the most widely-used stablecoin by market value and trade volume, is set to make a significant impact in the Bitcoin mining industry. Paolo Ardoino, Tether’s CEO, unveiled the company’s ambitious plan to invest approximately $500 million into Bitcoin mining over the next six months. This revelation came during a Bloomberg interview on Thursday, highlighting Tether’s strategic expansion beyond its core stablecoin business.
Tether, already a prominent name in the cryptocurrency sector with its stablecoin ranking as the third most valuable cryptocurrency by market capitalization, has been progressively venturing into Bitcoin mining. Earlier in May 2023, Tether initiated “sustainable bitcoin mining operations in Uruguay.” Following this, in June, the company invested in “Volcano Energy,” a Salvadoran bitcoin mining project.
The company further expanded its mining portfolio in late September by acquiring a 20% stake in Northern Data and purchasing Nvidia’s AI-centric GPUs. Ardoino, speaking to Bloomberg’s David Pan and Emily Nicolle, stressed Tether’s dedication to becoming an integral part of the Bitcoin mining ecosystem. He stated, “When it comes to the expansions, building new substations and new sites, we are taking them extremely seriously.”
Ardoino detailed Tether’s operation of three mining facilities, each with a capacity of 40 to 70 megawatts (MW), located in El Salvador, Paraguay, and Uruguay. He expressed the company’s goal to increase its total mining capacity to 120 MW by the end of the year.
Moreover, Tether had earlier revealed its strategy to not only mine Bitcoin but also to incorporate the leading cryptocurrency into its balance sheet. As of November 16, the total circulation of Tether’s stablecoin reached 87.43 billion, with a significant portion of the global trade volume involving Tether (USDT), amounting to $50 billion out of the total $98 billion recorded in the last 24 hours.
Tether’s foray into Bitcoin mining and its significant investment plan signifies a major expansion for the company, positioning it as a potential powerhouse in the cryptocurrency mining sector. This move reflects Tether’s broader ambition to diversify its operations and strengthen its presence in the evolving digital asset landscape.