USDT stablecoin giant Tether is breaking into Bitcoin mining in a big way, with ambitions to become a leading crypto-miner in this highly competitive arena.
The company plans to invest roughly $500 million over the next six months, revealed by incoming CEO Paolo Ardoino. This bold expansion includes constructing new mining facilities and snapping up stakes in existing mining firms.
Recently, Tether extended a $610 million credit line to Northern Data AG, a Frankfurt-headquartered Bitcoin mining company, and bought a sizable equity position. This strategic stake is part of Tether’s wider efforts to diversify beyond its core USDT stablecoin business.
As part of this new mining endeavor, Tether is building operations in Uruguay, Paraguay and El Salvador, with capacity from 40 to 70 megawatts at each location. While not giving a timeline, Ardoino has set an ambitious goal for Tether to achieve 1% of Bitcoin’s total computing power. This target is notable compared to Marathon Digital Holdings, the largest public Bitcoin miner, which currently holds about 4% network share.
By end of 2023, Tether aims to reach 120 megawatts of direct mining capacity, projecting growth up to 450 megawatts by end of 2025. Ardoino told Bloomberg that approximately $150 million is earmarked for direct mining initiatives, some of which are still being allocated to new sites. This expansion signals a major strategic shift as Tether looks to plant its flag in crypto.