Tether Plans $500 Million Bitcoin Mining Expansion: Paolo Ardoino Reveals Strategy
Summary:
Tether, under the soon-to-be leadership of Paolo Ardoino, has announced plans to venture extensively into Bitcoin mining. The company plans to spend approximately $500 million over the next six months on the development of mining facilities and investing in other miners. The investment plan includes the establishment of mining facilities in Uruguay, Paraguay, and El Salvador. Tether aims to eventually account for 1% of Bitcoin's total mining network.
In a recent announcement by Paolo Ardoino, the soon-to-be head of Tether, the stablecoin giant has ambitious plans to venture into Bitcoin mining. According to Ardoino in a Bloomberg interview, Tether is preparing to earmark approximately $500 million in the coming half a year for building mining infrastructure and investing in other mining operations. The company has set sights on Uruguay, Paraguay, and El Salvador to establish its mining facilities, aiming to account for 1% of the entire Bitcoin mining network. Ardoino pointed out that the proposed facilities will have a potential capacity varying from 40 to 70 mega watts.
The discussion of this major investment in mining coincided with a part of the $610 million loan facility that Tether extended recently to the German miner Northern Data Group. This lending move seems to follow a pattern of increasing loans initiated by Tether throughout this year. To support the artificial intelligence projects of Northern Data Group, Tether made a strategic investment in the group back in September.
Ardoino also disclosed Tether's projection to raise its direct mining activity up to 120 mega watts by 2024's end, and to hit a milestone of 450 mega watts by the conclusion of 2025. Tether is also contemplating on establishing a 300-mega watt infrastructure and is strategizing to house its facilities in mobile containers, which can be relocated corresponding to the fluctuations in electricity costs. The interview with Ardoino unraveled his perspective; "Mining is a learning curve and a space to expand for us, we don't intend to rush towards becoming the largest miner around the world."
According to an October announcement, Ardoino is set to assume his role as the new CEO of Tether in December and will simultaneously hold his position as the chief technical officer at Bitfinex, the parent company. At the time of going to press, Tether had not issued a response to a query raised by Cointelegraph.
Published At
11/16/2023 7:00:00 PM
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