Tether is set to invest $500 million in BTC mining: Report
November 17, 2023 9:25 AM
Paolo Ardoino, the company's new CEO, wants Tether to control 1% of the Bitcoin mining hashrate. The expansion will include the construction of new facilities in South America.
According to Paolo Ardoino, who is slated to take over as CEO of Tether soon, the corporation has big plans to increase its Bitcoin (BTC) mining operations.
Ardoino told Bloomberg in an interview that the stablecoin firm may spend $500 million in the next six months on mining facility building and investments in other miners. Mining operations will be established in Uruguay, Paraguay, and El Salvador as the company increases its computer capacity to account for one percent of the BTC mining network. He went on to say that the new facilities' output would be 40 to 70 MW.
The mining investment comprises part of the $610 million debt financing arrangement given to German miner Northern Data Group that Tether announced at the beginning of the month. Tether has increased the number of loans it has given this year, and in September, it made a strategic investment in Northern Data Group to support the company's efforts in the field of artificial intelligence.
Ardoino added that Tether plans to increase the power of its direct mining activities to 120 MW by the end of the year and to as much as 450 MW by the end of 2025. The company is setting up its facilities within containers, making them mobile in case electricity prices change. Interview comments from Ardoino:
"Mining is something we must learn and grow into over time. We have no pressing need to become the world's largest mining company."
Plans were announced in October for Ardoino to take over as CEO of Tether in December. He will also continue in his role as chief technological officer of the parent company, Bitfinex.