Tether plans to reinvest $500 million in Bitcoin mining

Paolo Ardoino, who is set to be promoted as the CEO of stablecoin issuer Tether, recently stated in an interview with Bloomberg that the company may spend around $500 million in the next six months on building mining facilities and investing in other miners, noting that mining is something Tether needs to learn and grow with over time.

Paolo Ardoino stated on 11/13 that a powerful puzzle in the Tether ecosystem is about to be completed, with at least 5 exciting projects expected by 2024, some of which may permanently erase the current popular Web2 centralized services.

He claims that this will be a purely real-world ecosystem and something that people truly need.

Recently, in an interview with Bloomberg, Ardoino mentioned that the company may spend about $500 million in the next six months on building mining facilities and investing in other miners. The company will be constructing mining facilities in Uruguay, Paraguay, and El Salvador, boosting its hash power to 1% of the BTC mining network. He further stated that the power capacity of the new sites will range between 40 to 70 megawatts (MW).

This includes a strategic investment in the Bitcoin miner Northern Data. According to reports earlier this month, Tether provided a €575 million unsecured debt financing to Bitcoin miner Northern Data, mainly for the purchase of advanced hardware, expansion of generative artificial intelligence cloud services, as well as the growth of data center investments and Bitcoin mining operations.

Tether provides €575 million unsecured debt financing! Strategic investment in Northern Data

Ardoino further mentioned that Tether plans to expand its direct mining business to 120 MW by the end of this year and reach 450 MW by the end of 2025. The company is also considering building a 300 MW facility. Ardoino stated in the interview:

Mining is something we have to learn and grow with over time. We are not in a rush to become the world's largest miner.

Paolo Ardoino will be promoted to CEO in December, while continuing as the Chief Technology Officer of its sister exchange Bitfinex and the Chief Strategy Officer of affiliated company Holepunch, overseeing Tether's technology department temporarily.