Tether is planning a large-scale expansion into Bitcoin (BTC) mining, according to Paolo Ardoino, who is expected to take the helm of the company soon.
The stablecoin company could spend around $500 million over the next six months on building mining facilities and investing in other miners, Ardoino told Bloomberg in an interview. The company will build mining facilities in Uruguay, Paraguay and El Salvador while increasing its computing power to 1% of the BTC mining network. The new sites would have a capacity of between 40 and 70 MW, he continued.
We are about to add another extremely powerful piece of the puzzle to @Tether_to ecosystem.
In total, 5 breathtaking projects (and counting) for 2024.
A few of them could permanently wipe out some popular Web2 centralized services.
Pure real-world ecosystem, aka “Things…
– Paolo Ardoino (@paoloardoino) November 12, 2023
The mining investment includes part of the $610 million debt financing facility provided to German miner Northern Data Group that Tether announced earlier this month. The loan was consistent with an upward trend in loans provided by Tether (USDT) this year. Tether previously made a strategic investment in Northern Data Group in September to support artificial intelligence initiatives.
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Ardoino further stated that Tether plans to increase its direct mining operations to 120 MW by the end of the year and reach 450 MW by the end of 2025. The company is also planning a 300 MW facility and installs its installations indoors. containers that can be moved when electricity prices change. Ardoino said in the interview:
“For us, mining is something we have to learn and develop over time. We are in no hurry to become the largest miner in the world.
Ardoino will become CEO of Tether in December and will retain his position as CTO of parent company Bitfinex, according to plans announced in October.
Tether did not respond to an inquiry from Cointelegraph at the time of publication.
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