Tether is investing heavily in Bitcoin mining, acquiring $32 million in Bitdeer shares amidst falling prices. As the cryptocurrency market faces challenges, Tether supports mining pool Ocean and has increased its stake in Bitdeer to 21%. Tether’s stablecoin, USDT, remains a major player despite previous legal issues, while the mining industry struggles with equity declines.
Recent developments show that as Bitcoin mining companies struggle with declining cryptocurrency prices and increased operational difficulties, Tether is making significant investments in the industry. Notably, Tether purchased approximately $32 million in equity in the publicly traded Bitcoin mining firm Bitdeer in April, as indicated by a recent SEC filing. This move came as the value of Bitdeer’s stock plummeted, despite Tether already having increased its stake to 21% earlier this year.
In addition to boosting its investment in Bitdeer, Tether announced support for the Bitcoin mining pool Ocean, providing it with hash rate resources aimed at enhancing its block mining capabilities and BTC rewards. The volatility within the industry is evident, as Bitdeer’s stock trades at $7.62, reflecting a staggering year-to-date decline of nearly 67%, amidst overall market challenges.
Further illustrating the industry’s downturn, Bitcoin miners such as Marathon Digital Holdings and Riot Platforms have seen their stock prices drop 26% and over 38% respectively this year. Concerns about the sector have led to urgent selling of Bitcoin by miners seeking to raise necessary funds, as indicated by data from CryptoQuant. Currently, Bitcoin oscillates around $85,000, a modest increase of approximately 7% over the last week, but notably lower than its record high of approximately $109,000 reached earlier this year.
Tether operates the USDT stablecoin, which is backed by a mix of dollars, treasuries, and other investments, allowing it to function similarly to fiat currency. As the largest stablecoin, USDT is often utilised for trading market entries and exits without relying on traditional banking methods. However, Tether has faced scrutiny, particularly a significant investigation by the New York Attorney General which concluded in early 2021, prompting the firm to cease operations in New York due to misleading statements about its asset backing.
Despite these challenges, Tether emphasises its commitment to transparency through quarterly attestations and is actively working with a major accounting firm for independent audits, reinforcing its claims regarding backing and maintaining confidence in the stablecoin’s integrity.
