Tether Expands Bitcoin Mining Operations Through Partnership with Swan

Tether, the world's largest stablecoin issuer, has invested an undisclosed amount of capital in Swan Bitcoin's Managed Bitcoin Mining service to establish its Bitcoin mining operations. Swan Bitcoin's service allows institutional investors to invest in the Bitcoin mining ecosystem, with tailored mining solutions. Tether's involvement in mining aligns with its plans to invest approximately $500 million in the sector, building upon its position as the seventh-largest BTC holder globally.

Tether Expands Bitcoin Mining Operations in Partnership with Swan

May 9, 2023

Zug, Switzerland - Tether, the leading issuer of stablecoins, has announced a significant expansion of its Bitcoin mining endeavors through a collaboration with Swan Bitcoin's Managed Bitcoin Mining service.

This strategic partnership marks Tether's commitment to the Bitcoin mining ecosystem and its belief in the long-term value of Bitcoin. Swan Bitcoin's Managed Bitcoin Mining service provides institutional investors with a turnkey solution for entering the Bitcoin mining industry, offering bespoke mining operations tailored to their specific needs.

Tether has allocated a substantial amount of capital to establish its Bitcoin mining operations through Swan Bitcoin. While the exact amount invested remains undisclosed, it reflects Tether's unwavering confidence in the future of Bitcoin and its mining infrastructure.

"Our collaboration with Swan in the mining sector has exceeded our expectations," said Paolo Ardoino, CEO of Tether. "Swan's team has demonstrated an unwavering commitment to transparency and operational excellence, achieving rapid deployment of hashrate."

Swan Bitcoin has rapidly expanded its mining capacity since its launch in August 2023, investing over $330 million to date. The company plans to increase its capacity to 19.5 EH this year and approximately 100 EH by 2026.

This investment aligns with Tether's broader plans to invest approximately $500 million in mining operations. The company is currently the seventh-largest BTC holder globally, with approximately 75,354 BTC, valued at $5.23 billion.

Tether's entry into the mining sector comes amidst a notable decline in daily revenue for BTC miners post-halving. Glassnode data shows a sharp drop in total revenue from block rewards and transaction fees, hitting a low of 417 BTC as of May 7.

However, innovative protocols such as Ordinal Inscriptions and Runes have emerged, increasing transaction volume and providing new revenue streams for miners. Ki Young Ju, CEO of CryptoQuant, highlights the transformative impact of these applications.

"Building apps on Bitcoin has significantly changed miners' income streams," said Ju. "Transaction fees now account for over 7% of their total revenue, up from 1% two years ago. This trend has persisted for the last four weeks and could potentially strengthen the network's fundamentals."

Tether's partnership with Swan Bitcoin is a significant milestone in the development of the Bitcoin mining industry. It demonstrates Tether's commitment to supporting the long-term growth and stability of the Bitcoin ecosystem.