Tether Ventures into Bitcoin Mining: A Strategic Shift Beyond Stablecoins

1. According to Bloomberg, Paolo Ardoino, Tether's incoming CEO, disclosed plans for Tether's Bitcoin mining investment, involving the construction of mining facilities and acquiring stakes in other companies. This includes a share of the $610 million credit facility extended to Bitcoin mining firm Northern Data AG, acquired by Tether in September.
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• Ardoino stressed Tether's dedication to participating in the Bitcoin mining ecosystem, marking a notable shift from its primary focus on stablecoins. Tether intends to establish Bitcoin mines in Uruguay, Paraguay, and El Salvador, each with a capacity ranging from 40 to 70 megawatts. The company aims to achieve 1% of Bitcoin's total computing power, without specifying a timeframe, in contrast to Marathon Digital Holdings, the largest public Bitcoin mining company contributing approximately 4%.
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1. By the end of 2023, Tether envisions reaching 120 megawatts in direct mining operations, with a projection to scale up to 450 megawatts by the close of 2025. Approximately $150 million has been allocated by the company for mining opportunities directly involving Tether, with funds still being deployed to new sites.
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3. Tether's foray into Bitcoin mining not only indicates diversification beyond stablecoins but also introduces a substantial player with significant resources to the competitive Bitcoin mining sector. Tether's entry could potentially impact competition for the limited token supply of the cryptocurrency and broaden revenue streams for the stablecoin giant.