Bitcoin

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Northern

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Tether, the issuer of the USDT stablecoin, is investing $500 million in bitcoin mining, targeting a 1% share of the bitcoin network's total computing power. This move diversifies its business, extending beyond its core stablecoin operations. Stablecoins like USDT are cryptocurrencies whose value is pegged to assets like the dollar or gold. Tether, with a capitalization over $87 billion, earns interest on its <a href="https://ultramining.com/news/en/major-bitcoin-mining-pool-foundry-usa-to-introduce-fee-structure/" rel="noopener noreferrer nofollow">US</a> Treasury bonds and other assets in USDT's reserve, according to <a href="https://www.rbc.ru/crypto/news/655653729a7947ad6a46977f" rel="noopener noreferrer nofollow">rbc</a>.
The company's CEO, <a href="https://ultramining.com/news" rel="noopener noreferrer nofollow">Paolo Ardoino</a>, revealed plans to spend this amount on infrastructure and stakes in <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/" rel="noopener noreferrer nofollow">mining companies</a>. This includes a credit line to Northern Data AG. Tether is constructing mining centers in Uruguay, <a href="https://ultramining.com/news/en/bitfarms-expands-bitcoin-mining-with-renewable-energy-in-paraguay/" rel="noopener noreferrer nofollow">Paraguay</a>, and El Salvador, each with 40-70 MW capacity. They aim to increase their capacity to 450MW by 2025.
This strategic expansion into mining presents significant competition in the cryptocurrency mining market, especially amidst the financial challenges facing other miners. The upcoming bitcoin <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a>, which reduces mining rewards, adds to these challenges. Tether's large-scale investments and its approach to market cycles position it uniquely in this competitive landscape.
Ardoino emphasizes Tether's gradual approach, focusing on learning and evolving in the mining sector. The company is generating revenue from its existing operations and is exploring a potential 300MW site, demonstrating its commitment to becoming a significant player in bitcoin mining.&nbsp;

Tether’s Bold $500 Million Bet on Bitcoin Mining

Ultramining_Eng

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