Tether Announces Plan To Corner Bitcoin Mining Industry
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November 16, 2023 1:40 pm
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Stablecoin giant Tether has announced a plan to corner the Bitcoin mining industry.
The company unveiled its initiative to invest $500 million into Bitcoin mining in an effort to become one of the biggest miners in the world.
Tether is moving into the mining space in order to diversify its holdings and move away from pure reliance on stablecoins.
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Currently, Tether plans to deploy the capital in the mining industry over the next six months. Finbold remarked:
Interestingly, BlackRock Inc. (NYSE: BLK) mentioned USDT in its risk disclosure for the spot Bitcoin ETF.
This described exposure is one example of the challenges Tether faces with its stablecoin’s reputation and business dependency.
Naveed Ahmad provided more details: “Shifting gears from stablecoins, Tether aims to establish mining facilities in Uruguay, Paraguay, and El Salvador. A strategic step into the world of crypto mining.”
#Tether, known for its stablecoin USDT, is making a bold move into Bitcoin mining with a $500 million investment 💸
Shifting gears from stablecoins, Tether aims to establish mining facilities in Uruguay, Paraguay, and El Salvador.
A strategic step into the world of crypto… pic.twitter.com/bL1ktMzOBI— Naveed Ahmad (@N_aveed_Ahmad) November 16, 2023
LATEST NEWS 📜#Tether announces plans for a $500 million investment into #Bitcoin mining operations, leveraging its reported $3.2 billion cash surplus from the Q3 attestation. pic.twitter.com/5SYyD6cey8
— Long Snout Watch 📜 (@LongSnoutWatch) November 16, 2023
🚨 NEWS: Tether is venturing into #Bitcoin mining with a planned $500 million investment over six months.
This venture aims to capture 1% of the Bitcoin network's computing power. pic.twitter.com/5qgTH1Ix9C
— BlockNews.com (@blocknewsdotcom) November 16, 2023
3/ 🌐 But it's not all smooth sailing. Increasing competition, thinning profit margins and the impending Bitcoin halving pose significant challenges. Will Tether emerge as a force in the crypto-mining landscape? Read more in our latest article. https://t.co/r9fUtA7cSZ
— CryptoSlate (@CryptoSlate) November 16, 2023
Tether’s plans have been known for some time as evidenced by this Decrypt article from earlier this year:
The stablecoin issuer has unveiled plans to invest in “sustainable Bitcoin mining operations” based in Uruguay, and will partner with a licensed company on the ground.
The South American country may seem like an unusual choice at first—not least because its share of network hashrate is negligible when compared with the U.S. and Kazakhstan.
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