Tether to Invest $500 Million in Bitcoin Mining

Tether Pivots Into Bitcoin Mining

Tether’s strategy involves constructing its own mining facilities and acquiring stakes in existing Bitcoin mining companies. This move includes a significant part of a $610 million credit facility extended to Northern Data AG. Subsequently indicating Tether’s commitment to the sector.

“We are committed to being part of the Bitcoin mining ecosystem. When it comes to the expansions, building new substations and new sites, we are taking them extremely seriously. Mining for us is something that we have to learn and grow over time We are not in a rush to become the biggest miner in the world,” Tether CEO, Paolo Ardoino, said.

Tether, primarily known for managing the USDT stablecoin, is diversifying its business model. This expansion into mining could impact the already saturated market for Bitcoin’s limited supply. Hence, marking a new direction for Tether’s revenue sources.

Bitcoin mining, the process of validating transactions on the blockchain, uses specialized equipment to secure the network and earn new BTC tokens in return. It requires substantial energy and resources. Indeed, Bitcoin’s energy consumption is reportedly around 127 terawatt-hours (TWh) annually, surpassing the energy usage of entire nations such as Norway.

In the United States, it is estimated that crypto operations contribute a carbon footprint ranging from 25 to 50 million tons of CO2 each year. This level of emissions is comparable to the amount produced yearly by diesel fuel consumption in the US railroad sector.

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Author: Bary Rahma

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