Tether, a prominent stablecoin company, is gearing up for a substantial expansion into the realm of Bitcoin mining, as revealed by Paolo Ardoino, who is slated to assume leadership of the company in the near future.
In an interview with Bloomberg, Ardoino disclosed that Tether is contemplating an investment of approximately $500 million over the next six months.
This capital will be allocated towards the development of mining facilities and investments in other mining entities.
To bolster its mining capabilities, Tether intends to establish mining facilities in Uruguay, Paraguay, and El Salvador.
The aim is to command 1% of the Bitcoin mining network’s computational power. These forthcoming sites will boast impressive capacities ranging from 40 to 70 megawatts (MW).
Interestingly, a portion of Tether’s mining investment is derived from the $610 million debt financing arrangement recently announced with the German mining firm Northern Data Group.
This move aligns with Tether’s strategic approach, which has seen the company extend loans throughout the year.
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In September, Tether had already made a strategic investment in Northern Data Group to support their artificial intelligence initiatives.
Ardoino further outlined Tether’s ambitious plans, with expectations to elevate its direct mining operations to 120 MW by the end of the year, and a grander vision of reaching 450 MW by the close of 2025.
Notably, the company is also exploring the possibility of establishing a 300-MW facility, and they are setting up their mining facilities within mobile containers that can be relocated to leverage favorable electricity prices.
Ardoino emphasized that their approach to mining involves gradual learning and growth, underscoring that they are not rushing to become the largest mining entity globally.
Paolo Ardoino is slated to assume the role of Tether’s CEO in December while maintaining his position as the Chief Technical Officer of the parent company, Bitfinex, as per the plans disclosed in October.
As of the time of this publication, Tether had not responded to an inquiry from Cointelegraph.
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