Tether, known for its role as a stablecoin issuer, has announced plans to become the largest Bitcoin miner by the end of 2024.
Safeguarding Reserves Through Mining
CEO Paolo Ardoino shared in a podcast with The Block that Tether's move into Bitcoin mining is not aimed at financial gain. Instead, it is a strategic step to secure the company's substantial Bitcoin reserves, currently over 100,000 Bitcoins valued at more than $10 billion.
Ardoino noted that those seeking profit would be better off buying Bitcoin directly rather than investing in mining infrastructure. He also warned that many mining promoters' claims can be misleading.
Record Profits and Broader Investment Ambitions
In 2024, Tether posted annual profits exceeding $13 billion, positioning the company alongside major financial institutions like Morgan Stanley, Mastercard, and Citigroup.
This financial strength has allowed Tether to diversify investments beyond stablecoins into areas such as artificial intelligence, energy infrastructure, and telecommunications, including Bitcoin mining. The company has allocated over $2 million into various mining and energy projects across multiple countries.
What Else Is Tether Doing
In addition to mining, Tether is developing new tools for digital payments and expanding its presence in professional sports. The company is creating an open-source wallet toolkit with machine integration in mind while deepening ties with a top European football club. Tether aims to secure a seat on the club's board and modernize operations using AI and blockchain.
Tether's entry into Bitcoin mining and its diverse investments highlight the company's commitment to reinforcing its position and financial resilience in a competitive market.
