Tether plans to invest approximately $500 million in the Bitcoin mining sector over the next six months

2023-11-16 23:08:31
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ChainCatcher news, according to Bloomberg, Tether Holdings Ltd. is taking steps to become one of the world's top Bitcoin miners. The company's incoming CEO, Paolo Ardoino, stated in an interview that the company plans to invest approximately $500 million over the next six months to achieve this goal by building its own mining facilities and taking stakes in other companies. This investment includes part of the $610 million credit arrangement that Tether provided to the publicly listed Bitcoin mining company Northern Data AG this month, after Tether acquired shares of Northern Data AG in September.

Ardoino said, "We are committed to being part of the Bitcoin mining ecosystem, and we place great importance on expanding, building new substations, and new sites." Ardoino also revealed that Tether is building Bitcoin mining facilities in Uruguay, Paraguay, and El Salvador, with each facility having a capacity between 40 and 70 megawatts, aiming to increase its share of the total hash rate running the Bitcoin network to 1%, but he declined to specify a timeline for achieving this goal. Tether expects its direct mining operations to reach a generating capacity of 120 megawatts by the end of 2023, and 450 megawatts by the end of 2025. The company has allocated approximately $150 million for mining opportunities directly involving Tether, some of which are still being deployed at new locations.

Ardoino also stated that Tether is currently evaluating a potential site with a capacity of 300 megawatts, and its mining operations have become profitable due to the rise in Bitcoin prices. The company has also built its equipment inside large containers, allowing for quick relocation to new sites once electricity becomes cheaper elsewhere. Ardoino said, "For us, mining is something that requires continuous learning and growth. We are not in a hurry to become the largest miner in the world."

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