Tether Launches Bitcoin Mining Operations in Uruguay

Tether, an issuer of stablecoins, has announced that it will launch Bitcoin mining operations in Uruguay.

Tether announced on May 30 that, in addition to investing in Uruguay’s energy production, it planned to launch a mining division in the country “in collaboration with a local licensed company.”

The stablecoin issuer asserted that the venture would employ renewable energy sources to mine Bitcoin in a “sustainable” manner and planned to hire additional team members.

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

“Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network.”

Tether cited Uruguay’s ability to generate 94% of its electricity from renewable sources such as wind, solar, and possibly hydropower, as well as the country’s dependable grid.

At the time of publication, job postings on its website also suggested expansion into South Africa and Brazil.

The mining announcement followed Tether’s declaration to “regularly allocate up to 15%” of its profits to BTC purchases.

As of the first quarter of 2023, the stablecoin issuer reported holding approximately $1.5 billion in Bitcoin, or 2% of its total reserves.

Most of Tether’s holdings consisted of cash, cash equivalents, and U.S. Treasury bills.