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Tether invests $500 million in Bitcoin mining expansion

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

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