Tether, a prominent stablecoin issuer, has expanded its involvement in mining activities through a partnership with Swan's Managed Bitcoin Mining service.

As per the press release, Tether has allocated a significant but undisclosed amount of capital to initiate its Bitcoin mining operations in collaboration with Swan.

Swan's Managed Bitcoin Mining service offers institutional investors the opportunity to invest a minimum of $100 million in the Bitcoin mining sector. Tether intends to provide customized mining operations tailored to meet the specific requirements of its clientele through this service.

Since August 2023, Swan Mining has invested over $330 million to enhance its mining capacity to 7.5 EH. However, plans are underway to further increase this capacity to 19.5 EH by the end of this year and to approximately 100 EH by 2026.

Paolo Ardoino, CEO of Tether, expressed satisfaction with the collaboration, noting Swan's commitment to transparency and operational excellence, which has facilitated swift deployment of hashrate.

Tether, being the largest stablecoin issuer, has disclosed intentions to invest approximately $500 million in mining activities. With holdings of approximately 75,354 BTC valued at $5.23 billion, the company ranks as the seventh-largest BTC holder globally.

Meanwhile, the move by Tether comes amidst a notable decline in daily revenue for BTC miners following the halving. Glassnode data indicates a significant decrease in total revenue derived from block rewards and transaction fees, hitting a low of 417 BTC as of May 7.

This downturn contrasts with the initial enthusiasm surrounding the halving and the emergence of innovative protocols like Ordinal Inscriptions and Runes. These protocols have garnered increased attention, generating interest in the blockchain landscape and contributing to miners' earnings.

Ki Young Ju, CEO of CryptoQuant, highlighted the transformative impact of these applications on miners' revenue streams, noting a significant increase in transaction fees, which now constitute over 7% of total revenue compared to 1% two years ago. This trend has persisted for the last four weeks and could potentially strengthen the network's fundamentals.