In a strategic move under the upcoming leadership of CEO Paolo Ardoino, Tether is set to make significant inroads into Bitcoin mining, with plans to invest approximately $500 million over the next six months. Paolo Ardoino, slated to assume the role of CEO shortly, revealed the stablecoin firm’s expansion aspirations in a recent interview with Bloomberg.
The ambitious initiative involves the establishment of new mining facilities in South American nations, including Uruguay, Paraguay, and El Salvador. Tether aims to scale its computing power to encompass 1% of the entire BTC mining network. These new sites, boasting capacities ranging from 40 to 70 MW, represent a crucial step in Tether’s mission to become a major player in the Bitcoin mining arena.
The $500 million investment encompasses a portion of the $610 million debt financing facility recently provided to German miner Northern Data Group. Tether’s financial involvement aligns with a broader trend of increased loans by the stablecoin firm this year. Notably, Tether had previously made a strategic investment in Northern Data Group in September, focusing on supporting artificial intelligence initiatives.
Paolo Ardoino outlined Tether’s growth projections, anticipating a rise in direct mining operations to 120 MW by year-end and an ambitious target of 450 MW by the conclusion of 2025. Additionally, the company is exploring the establishment of a 300-MW facility and is adopting a flexible approach by housing operations within containers that can be relocated based on electricity price fluctuations. Ardoino emphasized Tether’s measured approach to mining, stating, “Mining for us is something that we have to learn and grow over time. We are not in a rush to become the biggest miner in the world.”
Scheduled to assume the role of Tether CEO in December while retaining his position as Chief Technical Officer at parent company Bitfinex, Ardoino’s leadership signals a pivotal phase in Tether’s strategic evolution.
