Tether to Pump $500 mn Into Bitcoin Mining
Tether, a major stablecoin issuer, is planning to invest $500 million in bitcoin mining operations to become one of the world’s largest miners. The company is currently building bitcoin mining facilities in South America and Central America, with the goal of contributing one percent of the total computing power of the Bitcoin (BTC) network.
Tether, which maintains market dominance in the stablecoin industry, recently reported a cash surplus of over $3 billion. In an interview with Bloomberg, incoming CEO Paolo Ardoino revealed that the firm will allocate $500 million to bitcoin mining activities over the next six months.
The fund will be used to construct Tether’s bitcoin mining facilities and invest in existing BTC mining businesses, including a $609 million debt financing facility recently given to Northern Data Group.
Tether’s foray into BTC mining signals the company’s attempt at diversification and could provide an alternative avenue for profit-making.
The stablecoin issuer is behind the largest stablecoin, USDT, which has seen its market cap increase by $22 billion over the past year and reached a new peak of over $87 billion in November 2023.
(With inputs from Shikha Singh)
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