The issuer of the most popular stablecoin, USDT, Tether plans to invest $500 million in bitcoin mining, according to Bloomberg.
Over the next six months, the funds will be allocated to building mining facilities and taking stakes in other firms.
“We strive to be part of the bitcoin mining ecosystem. When it comes to expansion, building new substations and other facilities, we take this very seriously,” said Tether’s CEO Paolo Ardoino.
According to him, farms are already being built in Uruguay, Paraguay, and El Salvador. Each facility has a capacity of 40 to 70 megawatts. The company’s goal is to reach 1% of the global bitcoin network hashrate.
“A 1% market share would likely allow Tether to enter the top 20 largest bitcoin miners. Given Tether’s importance to the crypto ecosystem and its financial strength, over time the market share is likely to go well beyond the initial target,” said Jaran Mellerud, head of research at MinerMetrics.
Later, Ardoino noted in an email that the company intends to grow its own mining capacity to 120 megawatts by the end of 2023 and to 450 megawatts by the end of 2025. $150 million has already been allocated to achieve these targets.
The executive added that bitcoin mining operations are already profitable thanks to the rise in the asset’s price. The equipment is housed inside large containers so it can be quickly moved to a new location with cheaper electricity.
“As a private company that generates substantial sums even in a bear market, Tether has unique opportunities for large countercyclical investments,” emphasized Mellerud.
In June, the USDT issuer participated in the first round of financing for the Volcano Energy project, a $1 billion bitcoin mining operation in El Salvador.
The initiative aims to mine the first cryptocurrency using solar and wind renewable energy.
Earlier, Northern Data entered into an agreement with Tether to obtain credit financing of €575 million.
The firm will use the funds to scale bitcoin mining operations with liquid-cooling technology for its Peak Mining business.