Tether Aims to Invest Half a Billion Dollar in Mining Ventures Over Next Six Months to Become a Top Miner

Crypto Mining Tether USDT
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: Adobe/Jim

Tether, the company behind the world’s largest stablecoin USDT, aims to invest half a billion dollars to become one of the world’s leading Bitcoin miners. 

Paolo Ardoino, the company’s incoming CEO, said in a recent interview that Tether plans to invest approximately $500 million over the next six months. 

The company’s investment strategy includes constructing its own mining facilities and acquiring stakes in other mining companies.

The new venture represents a significant departure from Tether’s primary business of running the USDT stablecoin, which maintains a one-to-one value with the US dollar. 

Tether generates revenue by managing a reserve of US Treasury bills and other assets backing the USDT stablecoin.

As of September 30, the company had accumulated around $3.2 billion in excess cash. 

Tether has already allocated over $800 million this year for investments in various research-related fields, including Bitcoin.

Bitcoin mining is an energy-intensive process that validates transactions on the blockchain network. 

Miners use specialized computers to process transactions and, in return, receive new Bitcoin tokens. 

Tether plans to establish Bitcoin mining facilities in Uruguay, Paraguay, and El Salvador, with each site having a capacity ranging between 40 and 70 megawatts.

“A 1% market share would likely make Tether among the world’s 20 largest Bitcoin mining companies,” said Jaran Mellerud, chief executive at Bitcoin mining data and research firm MinerMetrics. 

“Given Tether’s importance in the crypto ecosystem and its financial muscle, its market share over time will likely grow far beyond its initial 1% goal.”

Tether Aims to Reach 120 MegaWatts of Mining Capacity by 2023


Tether aims to reach 120 megawatts of mining capacity through its own operations by the end of 2023. 

By the end of 2025, the company projects a capacity of up to 450 megawatts. 

Tether has allocated approximately $150 million for mining opportunities in which it is directly involved, with some funds still being deployed across new sites.

Tether’s investment in crypto mining comes as many miners have faced financial challenges since the cryptocurrency market downturn last year, leading some companies to declare bankruptcy. 

Tether’s ability to generate substantial cash, even during bear markets, positions it uniquely to make counter-cyclical investments.

However, Tether also faces challenges, including increasing competition and the upcoming Bitcoin code update known as the halving, which will significantly reduce mining revenue next year. 

Mining difficulty, a measure of the computing power required to earn new Bitcoin tokens, has reached historic highs multiple times this year as miners continue to expand their operations. 

Ardoino noted that Tether is evaluating a potential site with a capacity of 300 megawatts and confirmed that the company’s mining operations are already profitable due to Bitcoin’s price increases. 

Tether has also adopted a flexible approach by setting up its mining facilities inside large containers, enabling them to be relocated quickly to regions with cheaper electricity.

“Mining for us is something that we have to learn and grow over time,” Ardoino said. “We are not in a rush to become the biggest miner in the world.”

More Articles

Blockchain News
Bybit, Bitget, MEXC, Kucoin Apps ‘Removed from Japanese App Store’
Tim Alper
Tim Alper
2025-02-06 23:30:00
Price Analysis
Shiba Inu Whale Moves 1.23 Trillion SHIB – Massive Rally Starting? 
Trent Alan
Trent Alan
2025-02-06 22:37:02
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors