Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Tether invests $500 million in Bitcoin mining expansion

EditorPollock Mondal
Published 11/20/2023, 02:07 AM
© Reuters.

LONDON - Tether Holdings Ltd., the company behind the widely-used USDT cryptocurrency, is making a significant move into the Bitcoin mining sector. With a robust financial position backed by an $87 billion USDT valuation, Tether announced today an ambitious $500 million investment plan aimed at increasing its footprint in the competitive Bitcoin mining landscape.

The investment strategy includes the construction of new mining facilities and the acquisition of stakes in existing miners. Additionally, Tether has extended a $610 million line of credit to Northern Data AG (ETR:NB2), signaling confidence in its expansion plans.

This strategic push is not just limited to infrastructure but also encompasses geographical expansion. Tether is targeting regions across South and Central America, including Uruguay, Paraguay, and El Salvador. The company's goal is to contribute one percent to Bitcoin's total computing power. This could shake up the current competitive hierarchy, which includes major players like Marathon Digital (NASDAQ:MARA).

Paolo Ardoino, representing Tether, highlighted that the company's approach is twofold: seeking profitability while also being mindful of environmental impacts. Tether is choosing locations that are well-suited for sustainable energy use for its mining operations, reflecting a growing trend in the industry towards environmentally responsible practices.

Ardoino further stressed that Tether's commitment to a thoughtful long-term growth strategy takes precedence over rapid market dominance. By leveraging their strong financial base and focusing on sustainable development, Tether aims to establish itself as a significant player in the Bitcoin mining industry while promoting responsible energy use within its operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.