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Tether Makes Foray into Renewable Energy for BTC Mining in Uruguay

source-logo  financemagnates.com 30 May 2023 22:26, UTC

Tether is investing in renewable energy production in Uruguay for the mining of Bitcoin in the South American country, the company announced on Tuesday. The issuer of USDT stablecoin is also recruiting experts in the energy sector in the region as part of the plan.

The announcement follows Tether’s release of its financial reports, where the company disclosed that it had $1.5 billion worth of Bitcoins as part of its USDT reserves. Additionally, the company said it was committing to use 15% of its net profits to accumulate more BTCs to back the stablecoin.

Stablecoins has gained importance in the cryptocurrency industry for facilitating the buying and selling of digital assets. This factor has driven the value of USDT to a market capitalization of more than $83 billion, according to CoinMarketCap.

Why Uruguay?

Uruguay is one of the leading destinations for renewable energy, with up to 94% of its energy produced from renewable resources, including wind and solar power. Tether seeks to take advantage of the country’s robust wind, hydro, and solar energy resources.

"By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining," Tether Chief Technology Officer Paolo Ardoino said, adding that "our unwavering commitment to renewable energy ensures that every BTC we mine leaves a minimal ecological footprint."

USDT Circulations on the Rise

Incorporated in the British Virgin Islands and Hong Kong, Tether’s efforts to remain ahead of the other stablecoins in the market were boosted by the recent banking crisis in the US because of its disconnection to the banks in the region. Moreover, Tether reported that the company held $2.44 billion in extra reserves for the three months between January and March, representing an increase of up to 20% in the circulating USDT.

However, Tether’s growth has not been without challenges. The company has been accused of not maintaining adequate reserves to back USDT. In 2021, Tether and crypto exchange Bitfinex was fined a civil monetary penalty of $42.5 million for providing misleading statements about USDT backing by the US dollar.