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.
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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