Tether Maps Out 3-Year Mega Bitcoin Mining Plans

Tether Holdings Ltd, the issuer of United States Dollar-pegged stablecoin USDT has drawn out a 3-year mega plan for its Bitcoin mining venture, a move that includes investing $500 million into the sector until 2025.

Tether Bitcoin Mining to Gobble in $500M

In a recent development, Tether has made certain giant strides toward becoming one of the world’s top Bitcoin mining companies. For a highly competitive industry like BTC mining, Tether’s $500 million is a significant investment that could push the $87 billion stablecoin operator to reasonable heights within the next six months.

According to Tether’s newly appointed CEO and former CTO Paolo Ardoino, the funds will be directed towards the construction of its crypto mining sites and also in the purchase of stakes in other companies. 

“We are committed to being part of the Bitcoin mining ecosystem,” Ardoino highlighted. “When it comes to the expansions, building new substations and new sites, we are taking them extremely seriously.” 

The Tether Bitcoin mining adventure was underscored in September when the firm decided to acquire some stakes in crypto miner Northern Data Group. Aside from crypto mining, the strategic partnership involved the exploration of Artificial Intelligence (AI) in the mining ecosystem. 

The Northern Data Group-Tether collaboration was speculated to be worth $420 million but no official announcement was made to confirm this. However, the $500 million investment for Tether Bitcoin mining is believed to be part of a $610 million credit facility that Tether extended to the Frankfurt-based Bitcoin mining company.

With its current plans, the company hopes to hit 120 megawatt in its mining operations by the end of the year and 450 megawatts by the end of 2025.

Tether Making Pivot Away from USDT

For a top stablecoin issuer, recognized for its dominance in the industry, Tether is hinting at an expansion of its operations beyond the “four walls” of the USDT token. Its involvement in direct Bitcoin mining could transform the competition around USDT. The introduction of Bitcoin mining software as well as other moves has been made in line with the company’s Bitcoin mining mission. 

In May, Tether announced the launch of Tether Energy, a major investment in energy production and sustainable Bitcoin mining. The mining operations went live in Uruguay in partnership with a local licensed company. 

Speaking in a statement at the time, Ardoino expressed confidence that “by harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining.