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- Tether wants to build mining facilities in key locations including Uruguay, Paraguay and El Salvador.
- The stablecoin giant has strategically chosen the locations for its mining facilities to maximize efficiency.
Tether [USDT] has set its sights on a major expansion Bitcoin [BTC] mining, targeting an investment of approximately $500 million over the next six months.
Paolo Ardoino, who will soon take the helm at Tether, unveiled the company’s ambitious plan in a interview with Bloomberg.
The details
The stable currency Giant wants to build mining facilities in key locations including Uruguay, Paraguay and El Salvador. This is in an effort to increase its computing power to 1% of the Bitcoin mining network.
The stablecoin giant has strategically chosen the locations for its mining facilities to maximize efficiency and ensure optimal performance.
Ardoino outlined the company’s vision to build mining facilities in selected countries with a capacity ranging from 40 to 70 megawatts (MW).
The $500 million investment plan also included financing German miner Northern Data Group. Tether previously announced a $610 million debt financing facility for Northern Data Group earlier this month.
Ardoino said the company aims to reach 120 MW of computing power by the end of the year.
Looking ahead, Tether has even more ambitious goals. It plans to reach a computing power of up to 450 MW by the end of 2025.
The stablecoin company is also considering adaptability and flexibility in its mining operations. It explored the possibility of setting up facilities in containers that could be moved based on fluctuations in electricity prices.
Miners are rushing to book profits before the next halving
In the wake of Bitcoin’s recent surge, miners have seized the opportunity to capitalize on the rally and race against the clock before the upcoming ‘halving’ in April 2024.
Despite the surge in mining activity, the profitability of mining, an energy-intensive process, is still lagging behind its peak in 2021. Profits per unit of computing power have risen from $70 to over $81 since early November.
However, according to mining data platform Hashrate Index, this remains below the peak of $127 seen in May.
The previous two halvings in 2012 and 2016 were followed by substantial price increases for Bitcoin, providing impetus for miners to navigate the coming reduction in rewards.