Tether Plans Major Expansion into BTC Mining with $500M Investment: Report

Stablecoin Firm Tether Set to Enter Bitcoin Mining Industry

Tether, the popular stablecoin firm, is making significant moves to expand into Bitcoin (BTC) mining, with an investment of around $500 million expected in the next six months. Paolo Ardoino, who is set to take over as CEO of Tether, revealed the company's plans in an interview with Bloomberg.

New Mining Facilities in Uruguay, Paraguay, and El Salvador

Tether aims to boost its computing power to 1% of the BTC mining network by constructing mining facilities in Uruguay, Paraguay, and El Salvador. These new sites will have a capacity of between 40 and 70 MW, according to Ardoino.

Part of $610 Million Debt Financing Facility Allocated to Mining Investment

The $500 million investment in mining includes a portion of the $610 million debt financing facility that Tether announced earlier this month. The stablecoin firm has been increasing its loans this year and had previously made a strategic investment in German miner Northern Data Group to support their AI initiatives.

Plans to Increase Direct Mining Operations to 450 MW by 2025

Tether expects to expand its direct mining operations to 120 MW by the end of this year and aims to reach 450 MW by the end of 2025. The company is also considering a 300-MW facility and is implementing a flexible setup using containers that can be easily moved based on electricity prices.

In an interview, Ardoino emphasized that Tether is not in a rush to become the largest miner in the world, stating that mining is a learning process that requires gradual growth.

Ardoino will assume the role of Tether CEO in December while retaining his position as chief technical officer of parent company Bitfinex.

Tether did not respond to inquiries from Cointelegraph at the time of publication.