Stablecoin issuer Tether has announced it will be launching Bitcoin mining operations in Uruguay.
In a May 30 announcement, Tether said it planned to start a mining arm in the South American nation “in collaboration with a local licensed company” in addition to investing in Uruguay’s energy production. The stablecoin issuer claimed the venture would utilize renewable energy sources aimed at “sustainable” Bitcoin (BTC) mining and planned to hire additional team members.
“By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining,” said Tether chief technology officer Paolo Ardoino. “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.”
At Tether, we understand the importance of energy in driving progress & enabling thriving communities. That’s why we’re dedicated to harnessing the power of renewable energy to mine #Bitcoin, the world’s most open & secure monetary network.
— Tether (@Tether_to) May 30, 2023
Tether cited Uruguay’s capability of generating 94% of its electricity from renewable sources including wind, solar, and potentially hydropower, as well as its reliable grid. Job listings on its website at the time of publication also suggested expansion into South Africa and Brazil.
The mining announcement followed Tether saying it planned to “regularly allocate up to 15%” of its profits into BTC purchases. The stablecoin issuer reported it held roughly $1.5 billion in Bitcoin as of the first quarter of 2023 — 2% of its total reserves. Tether kept most of its holdings in cash, cash equivalents and U.S. Treasury bills.