Tether is planning a large-scale expansion of Bitcoin (BTC) mining, according to Paolo Ardoino, who is expected to take over the company’s leadership soon.
The stablecoin company could spend around $500 million over the next six months building mining facilities and investing in other miners, Ardoino told Bloomberg in an interview. The company will establish mining facilities in Uruguay, Paraguay and El Salvador while increasing its computing power to 1% of the BTC mining network. The new locations would have an output of between 40 and 70 megawatts (MW), he said.
We are close to adding another extremely powerful piece of the puzzle to the @Tether_to ecosystem.
A total of 5 stunning projects (and counting) for 2024.
Some of these could permanently wipe out some popular centralized Web2 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 that Tether provided to German miner Northern Data Group earlier this month. The loan was in line with Tether’s rising credit trend this year, which had already made a strategic investment in Northern Data Group in September to support artificial intelligence initiatives.
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Ardoino further said Tether expects to increase its direct mining operations to 120 MW by the end of the year and reach up to 450 MW by the end of 2025. The company is also considering a 300 MW plant and is building its facilities inside containers that can be moved as 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 retain his position as chief technical officer of parent company Bitfinex, according to plans announced in October.
Tether did not respond to a query from Cointelegraph at the time of publication.
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