Tether Expands into Bitcoin Mining in Partnership with Swan
Stablecoin giant Tether is diving deeper into the cryptocurrency mining pool by teaming up with Swan’s Managed Bitcoin Mining service, marking a significant expansion in its operational landscape. Tether, known for its predominant role in the digital currency market, has committed a substantial, albeit undisclosed, capital amount to kickstart its ventures in Bitcoin mining through Swan. according to Cryptoslate.
Swan’s service caters exclusively to institutional investors, requiring a minimum commitment of $100 million, aiming to reshape the mining ecosystem to suit the bespoke needs of its clientele. Since August 2023, Swan has invested over $330 million to boost its mining capacity from 7.5 EH to a projected 19.5 EH within the year, with sights set on reaching 100 EH by 2026. Tether’s CEO, Paolo Ardoino, praised the partnership, citing Swan’s commitment to transparency and operational excellence, which has significantly exceeded Tether’s expectations in rapid hashrate deployment.
On the financial front, Tether is not holding back, revealing plans to invest around $500 million in mining ventures. The firm also holds a commanding presence in the Bitcoin market as the seventh-largest BTC holder worldwide, possessing about 75,354 BTC valued at approximately $5.23 billion.
However, the broader mining landscape is experiencing a downturn, with BTC mining revenue witnessing a sharp decline post-halving, according to Glassnode. The total revenue from block rewards and transaction fees plummeted to a low of 417 BTC as of May 7, a stark contrast to the initial enthusiasm following the halving event.
Despite these challenges, new protocols like Ordinal Inscriptions and Runes have injected fresh dynamics into the sector, enhancing miners’ revenue streams, particularly through transaction fees, which now represent over 7% of their total income. CryptoQuant’s CEO, Ki Young Ju, emphasized the significant shift in revenue streams due to these applications, suggesting a strengthening of the network’s fundamentals moving forward.
