Very true

Tether, the issuer of the largest stablecoin by market cap (USDT), plans to invest half a billion dollars to establish itself as a relevant player in Bitcoin (BTC) mining. This bold move aims to propel Tether to the forefront of the Bitcoin mining industry.As reported by Bloomberg on November 16, Tether intends to invest the funds over the next six months. The stablecoin giant seeks to diversify its revenue streams and reduce market dependence on the USDT token. This strategic expansion presents new opportunities amidst the ongoing scrutiny over stablecoins.Interestingly, BlackRock Inc. (NYSE: BLK) mentioned USDT in its risk disclosure for the spot Bitcoin ETF. This described exposure is one example of the challenges Tether faces with its stablecoin’s reputation and business dependency.The company’s foray into Bitcoin mining follows the industry’s increased attention to the sustainability of mining operations. Tether asserts its commitment to environmentally friendly practices but does not disclose specific details on the technology or specific locations for its mining operations.Hashrate decentralization in Bitcoin mining and Tether’s 1% goalStakeholders in the cryptocurrency community have expressed mixed reactions to Tether’s announcement. While some view it as a positive development for industry investment, others worry about further concentration of mining power. Tether’s expansion comes at a time when the Bitcoin mining landscape is showing meaningful degrees of centralization, as previously reported by Finbold.However, the company’s endeavor could improve decentralization in different spectrums. The USDT controller aims to achieve approximately 1% of Bitcoin’s network hashrate, with 120 MW by the end of 2023, and 450 MW by the end of 2025. For that, Tether will build mining farms in Uruguay, Paraguay, and El Salvador, which will also improve geographic decentralization.Investors and regulators alike are keeping a close eye on stablecoins, and Tether’s decision to diversify may be a step toward broader acceptance and stability. However, how this investment will affect the company’s standing and the overall dynamics of the cryptocurrency market remains to be seen. The results of this investment will likely shape Tether’s future and its role within the larger digital asset ecosystem.#tether #bitcoin $USDT $BTC