Tether's Growing Influence in the Bitcoin Mining Industry

• Tether invests $500 million in Bitcoin mining, potentially becoming a major player.
• Partnerships with Bitmain, Blockstream, and various global mining companies solidify Tether's influence.
• Tether's reported profit surpasses Fannie Mae's, making it highly profitable per employee.
• Company's non-standard financial reporting raises questions about transparency and accounting practices.
• Tether generates profit from interest on reserves backing stablecoins, fueling investments in mining industry.
• Research suggests Bitcoin mining centralized around Bitmain, but Tether's growing influence is notable.

Summary :
Tether, the stablecoin giant, is quietly increasing its influence in the Bitcoin mining industry. It recently invested $100 million in Bitdeer, a company operated by a Bitmain co-founder, and is also the leading investor in Blockstream, Bitcoin's leading development company. Tether has also invested in various other Bitcoin mining ventures, including Volcano Energy, a Bitcoin mine in Uruguay, Swan Mining, German bitcoin miner Northern Data AG, Bitcoin miner ZettaHash, and Luganodes, a mining-like operation focused on the Tron blockchain. New research suggests that Tether's investments could make it one of the most influential mining companies in Bitcoin. However, the Bitcoin mining industry is not large enough to absorb significant investments, with total miner revenue for a year being around $16 billion. The largest mining companies have values ranging from the high hundred millions to low-single digit billions. Tether claims to be one of the most profitable companies per employee, reporting a profit of $4.5 billion in Q1 2024. It employs about 100 workers, compared to Fannie Mae's 8,100, but expects to earn tens of billions of dollars in profit this year. Tether generates significant profit from interest on its reserves and uses it to invest in the Bitcoin mining industry. However, the company's financial reports are not audited and its executives use non-standard words and phrases. Despite this, Tether's investments in Bitcoin mining are growing, potentially making it a major player in the industry.

Sources :

- Protos