Tether has ambitious plans for a significant expansion into Bitcoin mining, with an anticipated investment of approximately $500 million over the next six months, as revealed by Paolo Ardoino, the expected future leader of the company.
In an interview with Bloomberg, Ardoino outlined Tether’s strategy, including constructing mining facilities in Uruguay, Paraguay, and El Salvador. The goal is to enhance Tether’s computing power to represent 1% of the Bitcoin mining network, with new sites featuring a capacity ranging from 40 to 70 megawatts (MW). This mining initiative incorporates a portion of the $610 million debt financing facility recently provided to German miner Northern Data Group, part of Tether’s broader trend of increasing loans throughout the year.
Ardoino envisions Tether expanding its direct mining operations to 120 MW by the end of 2022 and reaching 450 MW by the close of 2025. The company is also exploring establishing a 300-MW facility and adopting a flexible approach by setting up facilities within movable containers that can be relocated based on electricity price variations. Ardoino emphasised that Tether is taking a gradual approach to mine, aiming for steady growth over time rather than rushing to become the world’s largest miner.
“Mining for us is something we must learn and grow over time. We are not in a rush to become the biggest miner in the world.”
He is set to become Tether’s CEO in December while retaining his role as the chief technical officer of parent company Bitfinex.
