USDC issuer Tether is always diversifying its investments, and lately, it boosted its bets on BTC mining firm Bitdeer amid growing competition in the industry.
Tether, the world’s largest stablecoin issuer, has increased its ownership of the Bitcoin mining company Bitdeer by 21%. This change, noted in a recent filing with the U.S. Securities and Exchange Commission (SEC), shows that Tether is working to diversify its investments. It also highlights Tether’s growing involvement in the cryptocurrency mining industry.
Tether Looking to Diversify its Business
Recall that in May 2024, Tether invested $100 million in Bitdeer. This investment is part of Tether’s plan to grow its role in the cryptocurrency market beyond just its stablecoin business. This initial investment paves the way for a stronger partnership between Tether and Bitdeer.
Meanwhile, Tether increased its stake to 21% using its working capital. This move increases Tether’s involvement in the Bitcoin mining sector and strengthens its position in the growing cryptocurrency market.
Notably, Tether is working to diversify its business to grow without relying on its stablecoin. The company has faced criticism about how its assets are backed. By investing in Bitcoin mining, Tether aims to gain more value from the cryptocurrency industry’s basic infrastructure.Â
Tether Exploring Beyond Blockchain
As reported by BGECrypto last year, Tether also invested $200 million into BlackRock Neurotech to become a majority owner. It is worth noting that Tether started as one of the pioneering stablecoin issuers and has grown to become the dominant player in the field.Â
With the injection into BlackRock Neurotech, Tether hopes to expand its influence beyond the confines of blockchain technology. Per the report, the firm’s newly spun Venture Capital outfit, Tether Evo, was invested. Ultimately, the stablecoin issuer plans to help its new portfolio firm expand its product’s commercialization.
Furthermore, Tether has also started investing in the Bitcoin mining sector to bolster its mallet presence. The mining push and BlackRock Neurotech investments mark a good use of the $2.9 billion in net profit recorded in Q4 2023. With mining, the company hopes to capitalize on the growing adoption of mainstream assets.
Amid these expansion moves, the Wall Street Journal (WSJ) reported that U.S. investigators were probing Tether. According to the report, the investigation included possible violation of Anti-Money Laundering regulations. In a swift reaction, Tether CEO Ardoino took to X to counter the WSJ, insisting that no evidence of investigation exists.
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