Back to the list

Tether invests in energy production in Uruguay to mine bitcoin

source-logo  protos.com 30 May 2023 12:49, UTC

Tether, the world’s largest stablecoin, has announced that it’s investing in renewable energy production for bitcoin mining in Uruguay. The size of the investment and the “local licensed company” it’s partnering with were not revealed in the press release.

Tether chief technology officer and face of the company Paolo Ardoino said, “Tether is proud to spearhead a movement that combines cutting-edge technology, sustainable practices, and financial innovation.”

On its recruitment page for this project, Tether is advertising for talent in Uruguay, Spain, and Argentina and is looking specifically for recruiters, electricians, technicians, and managers.

Uruguay is notable for the amount of its energy production that comes from renewable resources, with the International Trade Administration estimating the number at 98%.

iFinex, one of the companies that operates Bitfinex, Tether’s sister company, has previously invested in bitcoin mining efforts, including those led by Blockstream.

Tether’s reserves

This investment follows a recent surge in Tether’s surplus, with its most recent attestation showing over $2 billion more in assets than liabilities. It’s important to note that, as of March 31, when that attestation was performed, Tether had minimal cash on hand, totaling only $481 million — a mere 0.6% of its total reserves.

The Context: 🔍 Tether’s profits

Cash reserves are dwindling faster than Tether’s surplus is growing.

Subscribe and read 👉 https://t.co/HDOOlbxUPv

Latest from @BennettTomlin pic.twitter.com/mEi9jM2onq

— Protos (@Protos) May 19, 2023

Read more: Tether to spend profits on growing its mysterious bitcoin reserves

It’s unclear how much of its reserves were committed to this investment, or how it’s likely to affect the overall liquidity of these reserves.

Bitcoin mining is a hard business

Bitcoin mining is a very competitive market, with the Bitcoin difficulty adjustment and the ability for anyone to join making it challenging to continually make a profit. During the market downturn, multiple miners went under and loans extended to them ended up putting some lenders in precarious positions.

BlockFi faces heavy losses from its loan to Core Scientific

The most challenging part of this investment, like Tether’s investments in Exordium and Keet, is in figuring out how they help Tether retain its dollar value.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on Twitter, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.