Tether’s $500M Dive into Bitcoin Mining to Shake Up Crypto
Tether is charting a bold course in the realm of Bitcoin (BTC) mining, unveiling plans to infuse a staggering $500 million.
This substantial investment is a strategic bid to carve a substantial niche within the competitive Bitcoin mining domain.
Reports from Bloomberg dated November 16 divulged Tether’s blueprint to funnel this colossal sum over the span of the next six months. The motivation behind this move stems from the desire to diversify revenue streams, significantly reducing dependency on USDT, especially in light of the persistent scrutiny encircling stablecoins.
In a notable development, BlackRock Inc. (NYSE: BLK) referenced USDT in its risk disclosure concerning the spot Bitcoin ETF, shining a light on the myriad challenges Tether grapples with concerning its stablecoin’s integrity and business interconnections.
This foray into Bitcoin mining by Tether aligns closely with the evolving industry focus on sustainability within mining operations. While Tether professes a steadfast commitment to eco-friendly practices, specific details regarding the technology employed or the precise locations for these mining ventures remain undisclosed.
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The response within the cryptocurrency community to Tether’s announcement has been a mixed bag. While some herald it as a positive stride in industry investment, concerns loom regarding the potential consolidation of mining power.
Nevertheless, Tether’s ambitious venture promises to foster decentralization across various realms. The aim is to secure an approximate 1% share of Bitcoin’s network hashrate, targeting 120 MW by the close of 2023 and a substantial 450 MW by 2025’s end. To realize this ambition, Tether has set its sights on establishing mining facilities in Uruguay, Paraguay, and El Salvador, thereby amplifying geographic diversification.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
