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Tether is emerging as a powerful player in the Bitcoin mining industry. The stablecoin giant recently invested $100 million in <a href="https://ultramining.com/news/en/bitdeer-pioneers-crypto-mining-expansion-with-norway-and-bhutan-data-centers/" rel="noopener noreferrer nofollow">Bitdeer</a>, a company operated by a <a href="https://ultramining.com/en/manufacturers/bitmain/" rel="noopener noreferrer nofollow">Bitmain</a> co-founder, and it has also become the leading investor in <a href="https://ultramining.com/news/en/blockstream-s-game-changing-asic-miner-to-redefine-bitcoin-mining-landscape-in-2024/" rel="noopener noreferrer nofollow">Blockstream</a>, Bitcoin's foremost development company. Blockstream, funded partly by Tether, has an operating mining division and a dedicated purchasing division that securitizes Bitmain mining rigs. Additionally, <a href="https://www.bitfinex.com/sign-up?refcode=r-qv3hyl7" rel="noopener noreferrer nofollow">Bitfinex</a>, Tether's sister exchange, serves as the trading venue for the Blockstream Mining Note, according to <a href="https://protos.com/is-tether-becoming-bitcoins-most-influential-miner/" rel="noopener noreferrer nofollow">Protos</a>.
Tether's investments don't stop there. The company has funded or invested in several other ventures, including Salvadoran bitcoin mine Volcano Energy, a Bitcoin mine in Uruguay, Swan Mining, which has deployed over $330 million from Tether and other investors, and German bitcoin miner Northern Data AG, where Tether bought equity and established a €575 million debt facility. Tether also backs Bitcoin miner ZettaHash and has a mining-like operation called Luganodes focused on the Tron blockchain.
In just six months, Tether has invested $500 million into Bitcoin mining. If this pace continues, Tether could become one of the most dominant forces in the industry. However, the Bitcoin mining industry isn’t large enough to absorb much more than a few billion dollars in annual investment. Total Bitcoin miner revenue for an entire year is approximately $16 billion, and the market capitalization for all mining companies is a single-digit multiple of that revenue.&nbsp;
Tether claims to be one of the most profitable companies per employee in the world, reporting a profit of $4.5 billion in Q1 2024, surpassing the $4.3 billion in net income reported by Fannie Mae, the largest company in the US by assets. Tether employs about 100 workers, while Fannie Mae employs 8,100. Both companies expect to earn tens of billions in profit this year.
Despite these impressive figures, interpreting Tether's quarterly reports is more art than science. The company has never released audited financials, and its executives use non-standard terminology that doesn’t conform to US accounting standards. Tether generates substantial profits from interest on its reserves backing USDT and other stablecoins, retaining all interest income as corporate profit. With over $112 billion in interest-bearing assets and zero interest paid to token holders, Tether has ample funds to invest in the Bitcoin mining industry.

Tether’s Rapid Expansion in Bitcoin Mining Sector Raises Eyebrows

Ultramining_Eng

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