Tether partners with Swan to expand Bitcoin mining operations

Stablecoin
issuer

Tether
has
expanded
its
mining
endeavors
by

collaborating
with

Swan’s
Managed

Bitcoin

Mining
service.

According
to
the
press
statement,
the
firm
has
dedicated
an
undisclosed
amount
of
substantial
capital
to
establish
its

Bitcoin
mining
operations
through
Swan.

Swan’s
Managed
Bitcoin
Mining
allows
institutional
investors
to
commit
a
minimum
of
$100
million
to
the
Bitcoin
mining
ecosystem.
Through
the
service,
the
firm
plans
to
offer
bespoke
mining
operations
tailored
to
the
specific
needs
of
its
clients.

Since
August
2023,
Swan
Mining
has
spent
over
$330
million
to
increase
its
mining
capacity
to
7.5
EH.
However,
plans
are
to
increase
the
capacity
to
19.5
EH
this
year
and
about
100
EH
by
2026.

Paolo
Ardoino,
the
CEO
of
Tether,

said:

“The
collaboration
with
Swan
in
the
mining
sector
has
exceeded
our
expectations.
Swan’s
team
has
demonstrated
an
unwavering
commitment
to
transparency
and
operational
excellence,
achieving
rapid
deployment
of
hashrate.”

Tether
is
the
largest
stablecoin
issuer
and
revealed
plans
to

invest
approximately
$500
million
in
mining.
The
company
is
the

seventh-largest
BTC
holder
globally,
with
approximately
75,354
BTC,
valued
at
$5.23
billion.

Mining
revenue
dips

Tether’s
foray
into
mining
comes
during
a
notable
decline
in
daily
revenue
for
BTC
miners
post-halving.
Glassnode

data
showed
a
stark
drop
in
total
revenue
from
block
rewards
and
transaction
fees,
hitting
a
low
of
417
BTC
as
of
May
7.

This
downturn
contrasts
sharply
with
the

initial
excitement
surrounding
the
halving
and
the
emergence
of
innovative
protocols
like
Ordinal
Inscriptions
and

Runes.
These
protocols
have
garnered
increased
attention,
stirred
interest
in
the
blockchain
landscape,
and
contributed
to
miners’
earnings.

Ki
Young
Ju,
the
CEO
of

CryptoQuant,
highlighted
the
transformative
impact
of
these
applications
on
miners’
income
streams.
He
said:

“Building
apps
on
Bitcoin
has
significantly
changed
miners’
income
streams.
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.

Mentioned
in
this
article