Tether Aims To Become World’s Largest Bitcoin Miner By 2025

HomeNews* Tether announced plans to invest billions of dollars in Bitcoin mining to become the world’s largest operator by hashrate.

• The company will use profits from its $120 billion USDT reserve to fund these efforts, reinvesting heavily into bitcoin and mining infrastructure.
• An initial $500 million build-out in Uruguay, Paraguay, and El salvador began in 2023, expanding to include renewable energy sources like hydro, wind, and geothermal power.
• Tether aims for 450 megawatts of mining capacity by late 2025, with the goal of achieving one percent of global bitcoin mining output.
• Challenges remain, including tight supply of mining hardware and uncertain power agreements in Latin America, but the company continues to reinvest its stablecoin profits and expand operations.

• Advertisement - Chief executive Paolo Ardoino explained that the profits from Tether’s $120 billion USDT reserves will be directed heavily into bitcoin and mining operations. The company currently holds over 100,000 BTC, acquired through profits, not from the stablecoin reserves themselves.

The company began a $500 million investment program in 2023, focusing on mining facilities in Uruguay, Paraguay, and El Salvador. This expansion includes the construction of new power substations and purchasing minority stakes in existing mining farms, as detailed by Ardoino during his conference speech. Tether plans to have 450 megawatts of mining capacity installed by the end of 2025, which would account for about one percent of the world’s total bitcoin mining output.

Tether has stated it will continue to allocate up to 15 percent of its net realized operating profit towards bitcoin mining hardware and additional coin purchases. Locating mining facilities near renewable energy sources—hydro in Paraguay, wind in Uruguay, and geothermal in El Salvador—helps the company meet environmental requirements and manage power risks. Other investments include a $100 million stake in mining company Bitdeer.

Internal data from Tether puts its expansion target ahead of competitors such as Marathon Digital and Riot Platforms, which together account for less than its planned hashrate. Ardoino said, “by the end of this year, we may become the largest Bitcoin mining company in the world—surpassing all listed companies.” He added that, “Bitcoin mining is our hedging strategy for our own assets. We are not only holders of Bitcoin, but also participants in network security. We use our computing power to protect the security of this network.”

Tether was founded as a stablecoin issuer based on bitcoin technology. Ardoino described bitcoin as “perfect” and said the cryptocurrency now outcompetes Gold and fiat currency.

However, the supply of ASIC mining hardware remains limited, and electricity contracts in Latin America could be politically unstable. Notably, the company does not use bitcoin holdings to back the USDT currency peg, instead reinvesting operating profits into digital assets and infrastructure.

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