If you were to ask a typical Bitcoin enthusiast about the most influential mining company, Bitmain would likely come up.
However, Tether, the stablecoin giant, has been quietly expanding its influence in the bitcoin mining sector. With recent investments totaling $100 million in Bitdeer, a company associated with Bitmain's co-founder, and significant involvement with Blockstream, a leading Bitcoin development firm, Tether is making significant strides. Blockstream, partly funded by Tether, operates its own mining division and engages in purchasing Bitmain mining rigs. Tether also has a venture focused on the Tron blockchain called Luganodes.
Tether's investments in bitcoin mining over the past six months have surpassed $500 million, positioning it as a potentially major player in the industry.
Despite the substantial profits reported by Tether, which dwarf those of major corporations like Fannie Mae, its financial reporting practices lack standardization and transparency, raising questions about the true nature of its profitability.
Nevertheless, Tether's sizable reserves and profit margins from interest on its stablecoin reserves enable it to invest significantly in bitcoin mining.
June 2024, Cryptoniteuae