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Stablecoin Issuer Tether Invests in Sustainable Bitcoin Mining in Uruguay

Stablecoin Issuer Tether Invests in Sustainable Bitcoin Mining in Uruguay

Stablecoin Issuer Tether Invests in Sustainable Bitcoin Mining in Uruguay

The company earlier this month announced plans to invest part of its profits in BTC purchases and infrastructure.

The company earlier this month announced plans to invest part of its profits in BTC purchases and infrastructure.

The company earlier this month announced plans to invest part of its profits in BTC purchases and infrastructure.

AccessTimeIconMay 30, 2023, 1:36 PM
Updated May 30, 2023, 3:57 PM
(Rachel Sun/CoinDesk)

Tether – the issuer of stablecoin USDT – has invested in an energy production and sustainable bitcoin (BTC) mining facility in Uruguay, the company announced Tuesday in a press release.

The firm is collaborating with a “local licensed company” and is actively recruiting, according to the release, which did not disclose amounts of the investment or the partner firm.

Tether expects that the mining facility will start operating by mid-Q3 this year, a company spokesperson told CoinDesk.

The news comes after Tether laid out plans earlier this month to allocate a part of its profits to bitcoin investments, including regular purchases of BTC and funding infrastructure. Alongside that announcement, the company revealed its first bitcoin purchases, saying it held about $1.5 billion of the crypto as of the end of March.

“By harnessing the power of Bitcoin and Uruguay's renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining," Paolo Ardoino, Tether’s chief technology officer, said in the press release.

South America has seen increasing attention from overseas crypto investors, specifically bitcoin mining, thanks to a drying up of opportunities in North America. Uruguay's neighbor Paraguay has experienced an influx of miners looking to tap into its unused hydropower, though this has caused a stir in that country's political and energy systems.

Tether’s USDT is the largest stablecoin on the market with an $83 billion capitalization. The token is mostly backed with assets like U.S. government-issued debt, but also gold and a stash of secured loans to undisclosed parties. Rising yields over the past year-plus have proven to be a boon for the company, contributing to its $1.5 billion in net profits for the first quarter of 2023.

Edited by Stephen Alpher.

UPDATE (May 30, 15:55): Adds expected date to start operation from Tether spokesperson.

UPDATE (May 30, 13:55): Adds context about South America.


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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.