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Tether Taps Uruguay’s Renewable Energy to Mine Bitcoin
Uruguay generates 98% of its electricity through renewable energy sources.
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Tether is planning to tap Uruguay’s vast renewable energy power to launch sustainable Bitcoin mining operations in the country, the blockchain company said in an announcement on Tuesday. To make this possible, the company is teaming up with an unidentified local licensed firm and hiring professionals in the energy sector.
Tether’s Expansion to Mining is a Part of its Plan to Become a “Global Tech Leader”
Tether, the blockchain company behind the USDT stablecoin, announced on Tuesday it is planning to commence energy production and sustainable Bitcoin mining operations in Uruguay after forming a partnership with a local licensed company.
The move marks Tether’s initial foray into the energy sector as part of its broader plan to become “a global tech leader,” it said in the press release. To achieve this, Tether is investing in renewable energy sources to enable and promote sustainable Bitcoin mining and hiring energy experts.
“By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining. Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network.”
– said Paolo Ardoino, CTO of Tether.
The decision to choose Uruguay for this venture comes after the South American nation emerged as one of the global leaders in the renewable energy market, Tether added. Uruguay generates as much as 98% of its electricity using renewable sources, particularly wind, hydro, and solar power.
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Tether Bullish on Bitcoin
From a broader perspective, Tether’s push into sustainable Bitcoin mining underscores the blockchain firm’s continued optimistic sentiment toward the world’s leading cryptocurrency. Earlier this month, the USDT issuer said it would start allocating up to 15% of its profits in BTC in a bid to reinforce its financial reserves. In 2022, Tether hired a new audit firm to monitor its reserves reports.
According to Tether’s latest attestation report, the firm already held $1.5 billion of Bitcoin in its reserves. Moreover, the blockchain firm said it would custody its Bitcoin holdings independently rather than entrusting that task to a third-party custodian.
Meanwhile, Tether’s USDT continues to command the largest share in the stablecoin market, followed by USDC and BUSD. Over the past year, USDT saw its market share grow from roughly 47% to 65.89%, while its market cap surged to $83.1 billion.
Given the company’s vast financial power, do you think Tether could become one of the leaders in sustainable Bitcoin mining? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
