The company Tether announced plans to invest resources in renewable energy production for Bitcoin mining. The company will support stablecoin Tether (USDT) by opening a Bitcoin mining farm using renewable energy, marking its first foray into the energy sector.
Bitcoin mining has always raised concerns because of its harmful effects on the environment. Tether is looking for experts in Uruguay to support the expansion of Bitcoin mining with renewable energy.
According to the Department of Management Trade Fund According to the United States International Union (ITA), Uruguay is considered a leader in renewable energy production, providing more than 98% of its electricity from renewable energy, mainly wind, and hydroelectricity. With significant investments in energy infrastructure, Uruguay has a robust power grid capable of meeting the needs of modern industries. This would be the perfect platform for Tether to start Bitcoin mining
“By harnessing the power of Bitcoin and Uruguay’s renewable energy, Tether is leading the way in responsible and sustainable Bitcoin mining,” said Paolo Ardoino, CTO of Tether. The company ensures that every Bitcoin mined leaves a minimal “ecological footprint” while maintaining the security and integrity of the Bitcoin network, Ardoino added.
Tether said it will change its treasury management strategy and plan to use 15% of the profits to buy Bitcoin. According to CoinGecko data, Tether’s USDT is currently the largest stablecoin on the market with a circulating supply of more than $83.2 billion, surpassing rivals such as USD Coin (USDC) and Binance USD (BUSD). Tether reports it held approximately $1.5 billion worth of Bitcoin as of Q1 2023.
Stablecoins are used by traders to move in and out of different cryptocurrencies without converting back to fiat. Each USDT token in circulation is pegged to the price of the USD in a 1:1 ratio by the reserves of Tether.
According to CNBC, Tether has been in trouble several times when regulators and economists questioned the assets the company uses to back the USDT token. Tether previously held most of its assets in the form of commercial paper. By 2022, the company has replaced all of its commercial paper with US Treasury bills