Tether's Ambitious Move: $500M Investment into Bitcoin Mining
Tether’s Ambitious Move: $500M Investment into Bitcoin Mining
Key Insights [Tether](https://voiceofcrypto.online/news/usdt-stability-makes-safest-stablecoin/), the issuer of the world’s largest stablecoin USDT, is expanding into Bitcoin mining with a $500 million investment. – The company aims to increase its share of the [Bitcoin](https://voiceofcrypto.online/analysis/bitcoin-surging-rebound/)mining network to about 1%. – The firm is taking advantage of low electricity costs, several sources of renewable energy, and clear [crypto](https://voiceofcrypto.online/news/unciphered-alert-billion-crypto/)regulations in South America. – The company extended a $610 million loan to Northern Data Group and is using its mining project as a repayment plan. – Tether aims to generate about 120 MW of direct mining power by the end of 2023 and up to 450 MW by the end of 2025. The issuer of USDT, which is also the largest stablecoin by market cap in the world, is about to make a major upgrade. According to the company’s incoming CEO, Paolo Ardoino, the company is about to break into Bitcoin Mining. Moreso, Tether plans to splurge a whopping $500 million on this new project to build new mining facilities and support other miners in the industry. Tether Is Coming To South America According to a new [interview](https://www.bloomberg.com/news/articles/2023-11-16/stablecoin-issuer-tether-usdt-btc-wants-to-become-a-major-bitcoin-miner?srnd=cryptocurrencies-v2) with Bloomberg, Ardoino mentioned that with this new investment, Tether aims to increase its share of the Bitcoin mining network to about 1%. They aim to accomplish this by setting up new mining sites in South American countries like Uruguay, Paraguay and El Salvador. South American countries, to begin with, offer low electricity costs, several sources of renewable energy, and clear crypto regulations. All of these are favourable conditions for Bitcoin mining, explaining Tether’s decision. Ardoino also mentioned that these new Bitcoin mining rigs will have power capacities of about 40 to 70 megawatts (MW) each. Debt Financing And Strategic Partnership A major part of the $500 million the company aims to invest, comes from a $610 million loan that the company [extended](https://www.eqs-news.com/news/adhoc/northern-data-ag-secures-eur-575-million-debt-financing-facility-to-drive-further-investments-across-its-three-business-lines/1930351) to German AI and Blockchain mining company, “Northern Data Group”. Tether announced the loan earlier this month, right after a strategic investment in the German mining company in September. Tether says that this loan is part of a larger plan to increase lending activities this year. The firm aims to diversify its streams of income, and also support the Bitcoin network at the same time. Future Plans And Challenges According to Ardoino, they aim to be able to generate about 120 MW of direct mining power by the end of 2023. This figure is also expected to go up to 450 MW by the end of 2025. Tether is also considering building a 300-MW mining facility and is using containers to house its mining equipment. Ardoino says that this will allow the company to easily move its mining equipment when electricity prices fluctuate. Ardoino concluded that Tether is still learning and growing in the mining sector, and becoming the biggest miner in the world is not the goal for now. Ardoino will take over as Tether’s CEO in December while retaining his role as the chief technical officer of Bitfinex. The incoming CEO will replace Jean-Louis van der Velde, who has been the company’s CEO since it started operation in 2014. Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.