Tether Moves to Claim Top Position in Bitcoin Mining Race by Year-End

Tether is stepping beyond its role as a stablecoin issuer, with CEO Paolo Ardoino revealing ambitions to become the largest Bitcoin miner by the end of this year. This move isn’t about chasing profits but about reinforcing the security of Tether’s significant Bitcoin holdings and supporting the wider network.

Safeguarding Reserves Through Mining

In a podcast conversation with The Block, CEO Paolo Ardoino shared that Tether’s decision to enter Bitcoin mining isn’t driven by financial gain. Instead, the company sees it as a strategic step to safeguard its substantial Bitcoin reserves. Tether currently holds over 100,000 Bitcoins, valued at more than $10 billion.

Ardoino noted that those looking purely for profit would be better off purchasing Bitcoin directly, rather than investing in mining infrastructure. In his view, allocating $1 million to buy Bitcoin outright typically yields stronger returns than using the same amount to fund mining operations.

He also cautioned against taking claims from mining promoters at face value, suggesting that many such promises about high returns can be misleading.

I think given the exposure that we have to Bitcoin, it’s important to be part of the security of the network. Realistically, by the end of this year, Tether will become the biggest bitcoin miner out there.

Tether CEO, Paolo Ardoino

Record Profits and Broader Investment Ambitions

In 2024, Tether achieved an annual profit exceeding $13 billion. This figure places the firm in close competition with major traditional financial institutions. Its reported earnings are on par with or ahead of Morgan Stanley, Mastercard, and Citigroup over the same period.

This financial strength has enabled the company to diversify far beyond its original role as a stablecoin issuer. Over recent years, Tether has directed funds into several industries, including artificial intelligence, energy infrastructure, telecommunications, and now, Bitcoin mining.

Tether has committed over $2 million into various mining and energy projects across multiple countries. The company is funding the development of renewable energy sources and new power substations to support mining operations. It has also taken smaller ownership stakes in several active mining ventures within these regions.

Its entrance into this sector began in late 2023, when it allocated $500 million toward the first phase of what is set to be a much larger investment programme. Though Tether has yet to disclose its current mining output or computing power, its financial commitments reflect a firm intention to scale up operations.

What Else Is Tether Doing

Tether is expanding beyond stablecoins with new tools for digital payments and a push into professional sport. It’s developing open-source wallet tech with machine integration in mind, while also deepening ties with a top European football club.

• Tether is building an open-source wallet toolkit to support new digital payment systems.
• A multichain wallet is underway, designed to pick the lowest-cost network for transactions.
• The wallet will support emerging markets and be usable by both people and AI-powered machines.
• Non-custodial wallet tech is being designed to run on devices from cheap phones to smart machines.
• Tether invested €128M in Juventus in February, growing to become the club’s second-largest shareholder.
• The firm now wants a seat on Juventus’ board and plans to modernise operations using AI and blockchain.

By entering Bitcoin mining, Tether will be joining a competitive field alongside some of the biggest miners. Firms like Marathon Digital Holdings, CleanSpark, Iris Energy, Riot Platforms, and Core Scientific currently lead in mining power, measured in exahashes per second (EH/s). The entire Bitcoin network’s computing power is estimated at around 810 EH/s. Tether’s challenge will be to grow its mining capacity and carve out a strong position among these established players.