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Stablecoin Issuer Tether Invests in Sustainable Bitcoin Mining in Uruguay

source-logo  coindesk.com 30 May 2023 10:36, UTC

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.

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.

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.