Tether's Mining Ambition: A $500 Million Venture into Crypto's Core
Tether Holdings Ltd., the leading issuer of stablecoins in terms of market value and trade volume, has announced its ambitious plans to enter the mining industry. CEO Paolo Ardoino revealed that the company intends to invest approximately $500 million into its mining business over the next six months.
Tether Expands into Mining Sector
Tether, known for managing the largest stablecoin by market worth, has recently been making strides in the mining sector. In May 2023, the company ventured into "sustainable bitcoin mining operations in Uruguay," and in June, it invested in a Salvadoran bitcoin mining project called "Volcano Energy."
To further diversify its portfolio, Tether secured a 20% share in Northern Data and acquired Nvidia's AI-oriented GPUs in September. Speaking to Bloomberg, Ardoino emphasized Tether's commitment to mining, stating, "We are committed to being part of the Bitcoin mining ecosystem."
Expanding Mining Facilities
Ardoino outlined Tether's plans to expand its mining facilities in El Salvador, Paraguay, and Uruguay. Currently, the company operates three facilities, each with a capacity ranging from 40 to 70 megawatts (MW). Tether aims to increase its total capacity to 120 MW by the end of the year.
Tether's Growing Influence in the Crypto Market
In addition to its mining ambitions, Tether has also revealed its strategy of including Bitcoin in its balance sheet. As of November 16, the circulation of Tether has reached 87.43 billion, with $50 billion in global trade volume involving tether (USDT) in the last day.
Tether's entry into the mining industry with a significant investment of $500 million marks a strategic move for the stablecoin issuer. With its growing influence in the crypto market, Tether aims to become a formidable force in the bitcoin mining sector. What are your thoughts on Tether's mining ambitions? Share your opinions in the comments below.
Frequently Asked Questions
Can I keep my gold IRA at work?
An online brokerage account will allow you to invest in the most secure way possible. You have all the investment options you'd get if you had a traditional broker. However, you don't require any licenses or qualifications. There are no fees to invest.
Online brokers often offer free tools to help manage your portfolio. They will even let you download charts to see how your investments perform.
Which is stronger, 14k or sterling gold?
While gold and silver are both strong metals but sterling silver is less expensive than silver because it contains 92% pure Silver rather than 24%.
Sterling silver is also known by the name “fine silver” because it is made up of a mixture from silver and metals like zinc, copper, and zinc.
Gold is usually considered to be extremely strong. It is very difficult to separate it from its metal counterpart. If you were to drop an object on top of a piece of gold, it would shatter into thousands of pieces instead of breaking into two halves.
Silver isn't nearly as strong as either gold or silver. If you dropped an item onto a sheet of silver, it would probably bend and fold without shattering.
Silver is often used to make jewelry and coins. Because of this, silver's value is subject to fluctuations based upon supply and demand.
How does an IRA for gold and/or silver work?
You can make investments in precious metals (such as gold or silver) without having to pay tax. They are a good investment option for those who wish to diversify their portfolios.
If you are over 59 1/2, income tax is not due on the interest earned from these accounts. On any appreciation in value of the account, you don't have to pay capital gain tax. However, there are limitations on how much money you can put into this type of account. The minimum amount is $10,000. You can't invest if you're younger than 59 1/2. The maximum annual contribution allowed is $5,500
You may not receive the entire amount if you pass away before retirement. After paying all expenses, your assets must be sufficient to cover the remaining balance in your account.
Some banks offer IRA options in gold and silver, while some require you to open a regular brokerage accounts through which you can purchase shares or certificates.
Are silver and gold IRAs a good idea for you?
If you are looking for an easy way to invest in both gold and silver at once, then this could be an excellent option for you. But there are other options. Contact us anytime if you have questions about these types investment options. We are always available to assist you!
Does a gold IRA make money?
Yes, but not as much. It depends on what level of risk you are willing take. A $10,000 investment per year for 20 years could lead to $1 million by retirement age. But if you put all your eggs in one basket, you'll lose everything.
You need to diversify your investments. When there is inflation, gold does well. You want to invest in an investment asset that rises with inflation. Stocks do this well because they rise when companies increase profits. Bonds are also able to do this. They pay interest each year. They are great in times of economic growth.
But what happens when there isn't any inflation? During deflationary periods, bonds fall in value while stocks fall further. Investors should not put all of their savings in one investment such as a stock mutual fund or bond.
Instead, they should diversify their investments by investing in different types of funds. They could invest in stocks or bonds. They could also invest both in bonds and cash.
By doing so, they are exposed to both the positive and negative sides of the coin. Inflation and depression. And they will still see a return over time.
How much should your IRA include precious metals
Investing in precious metals such as gold and silver is the best way to protect yourself from inflation. It's not just a way to save money for retirement.
Although silver and gold prices have increased in recent years, they can still be considered safe investments as they don't fluctuate nearly as much as stocks. These materials are in constant demand.
The prices of gold and silver are generally predictable and stable. They are most likely to rise when the economy grows and fall during recessions. This makes them great long-term investors and money-savers.
Ten percent should go into precious metals. This percentage can be increased if your portfolio is more diverse.
How does a gold IRA generate interest?
It all depends on how much you invest in it. If you have $100,000 then yes. You will not be able to answer if your income is less than $100,000
The amount of money you put into an IRA determines whether or not it earns interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
You will likely earn more interest there, but you'll also be exposed to riskier investments. You don't want to lose all of your money if the stock market crashes.
An IRA might be more advantageous if you are able to contribute only $100,000 per year. At least, until the market begins to grow again.
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- Silver must be 99.9% pure • (forbes.com)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to decide if a Gold IRA is right for you
Individual Retirement Accounts (IRA) are the most popular type. IRAs are available through employers, banks, mutual funds, and financial planners. Individuals can contribute as much as $5,000 per year without any tax consequences. You can contribute this amount to any IRA regardless of your age. You can only put a certain amount into an IRA, but there are restrictions. For example, you cannot contribute to a Roth IRA unless you're at least 59 1/2 years old. You must wait until your age 70 1/2 to make contributions if you are under 50. Additional, employees who work for their employer might be eligible to receive matching contributions.
There are two types of IRAs available: Roth and traditional. A traditional IRA lets you invest in stocks, bonds, real estate, and other investments, while a Roth IRA lets you invest only in after-tax dollars. Roth IRA contributions are not subject to tax when they are made, but Roth IRA withdrawals are. Some people choose to use a combination of these two accounts. Each type is different. There are pros and con's to each. How do you choose the best type of IRA for you? Below are three important things to keep your mind on:
Traditional IRA Pros
- Each company has its own contribution options
- Employer match possible
- Can save more than $5,000 per person
- Tax-deferred tax growth until withdrawal
- Income level may be a factor in some restrictions
- The maximum contribution limit is $5,500 per year ($6,500 if married and filing jointly)
- Minimum investment is $1,000
- You must start receiving mandatory distributions after age 70 1/2
- To open an IRA, you must be at least 5 years old
- Transfer assets between IRAs cannot be done
Roth IRA pros
- Contributions are free of taxes
- Earnings increase without tax
- No minimum distributions
- There are only a few investment options available: stocks, bonds and mutual funds.
- There is no maximum allowed contribution
- There are no restrictions for transferring assets between IRAs
- Open an IRA if you are 55 years or older
Considering opening a new IRA, it's essential to know that not all companies offer the same IRAs. Some companies allow you to choose between a Roth IRA or a traditional IRA. Some will let you combine them. Noting that different types IRAs have different requirements, it's worth noting. A Roth IRA does not have a minimum investment requirement. Traditional IRAs require a minimum of $1,000.
The Bottom Line
The most important factor when choosing an IRA is whether you plan to pay taxes immediately or later. If you are retiring within ten year, a traditional IRA could be the right option. Otherwise, a Roth IRA could be a better fit for you. In either case, it's a smart idea to speak with a professional about your retirement plans. Someone who understands the market will be able to recommend the best options.
By: Jamie Redman
Title: Tether Sets Sights on Bitcoin Mining with $500 Million Investment
Sourced From: news.bitcoin.com/tether-charts-strategic-course-in-bitcoin-mining-plans-500-million-infusion/
Published Date: Thu, 16 Nov 2023 22:00:13 +0000