Tether Partners with Swan to Expand Bitcoin Mining Operations

Stable coin issuer Lashing expanded its mining efforts by collaborating with Swan Managed Bitcoin mining service.

According to the press release, the company has dedicated an undisclosed amount of substantial capital to establish its Bitcoin mining operations through the Swan.

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

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

Paulo Ardoinothe CEO of Tether, he said:

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

Tether is the largest stablecoin issuer and has revealed plans to invest approximately US$500 million in mining. The company is the seventh largest BTC holder globally, with approximately 75,354 BTC, valued at US$5.23 billion.

Mining revenue falls

Tether’s foray into mining comes during a notable decline in daily revenue for BTC miners following the halving. Glassnode data showed a sharp drop in total revenue from block rewards and transaction fees, reaching a low of 417 BTC on May 7.

Bitcoin miner revenue. (Source: Glassnode)

This recession contrasts sharply with the initial excitement around halving and the emergence of innovative protocols such as ordinal inscriptions and Runes. These protocols have attracted increasing attention, sparked interest in the blockchain scene, and contributed to miners’ earnings.

Ki Young Ju, CEO of CriptoQuant, highlighted the transformative impact of these applications on miners’ income streams. He said:

“Building applications on Bitcoin has significantly changed miners’ income streams. Transaction fees now represent more than 7% of its total revenue, up from 1% two years ago. This trend has persisted over the past four weeks and could potentially strengthen the network’s fundamentals.

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Posted in: Mining, Stable coins

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