Tether, the company behind the largest stablecoin, is setting up a Bitcoin mining operation in Uruguay using renewable energy.

The move is part of the company’s effort to diversify its revenue mix and support and promote sustainable Bitcoin mining, the company said in a Tuesday announcement.

Tether said it is actively seeking experts in the renewable energy space to help support the South American-based mining initiative.

“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, CTO of Tether, said, adding:

“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 Aims to Mine Bitcoin “Sustainably” in Uruguay

Bitcoin mining relies on a distributed network of computers around the world to verify transactions and release new coins into circulation. It’s also notoriously power-intensive.

However, Tether believes that by using Uruguay’s renewable energy capabilities, it can mine Bitcoin sustainably and responsibly.

Uruguay may initially seem like an unconventional location for Tether’s Bitcoin mining operation, particularly considering its minimal share in the network hashrate when compared to the US and Kazakhstan.

However, the country’s reliance on renewable energy, which accounts for over 98% of its electricity production, primarily through sources such as wind and hydropower, presents Tether with a unique chance to adopt a more environmentally-friendly approach to Bitcoin mining.

Notably, Tether’s new Bitcoin mining initiative comes as the leading cryptocurrency is poised to become scarcer, with an upcoming halving event scheduled for less than 12 months away.

Tether is All-In On Bitcoin: to Invest 15% of Net Profit in Bitcoin

Tether isn’t just mining Bitcoin, it is going to start buying it in bulk every month.

Earlier this month, Tether announced that it would shift its treasury management strategy to start investing a portion of its net profit in Bitcoin.

The company committed to using up to 15% of its net profit to purchase Bitcoin, following the footsteps of giant electric carmaker Tesla and technology company MicroStrategy.

Tether issues the USDT stablecoin, which unlike bitcoin, is meant to hold a stable value at all times.

USDT is the largest stablecoin in the market with a circulating supply of more than $83.2 billion, according to CoinGecko data. It competes with Circle’s USD Coin (USDC) and Binance’s BUSD.

Stablecoins are used to address the high volatility of cryptocurrency prices, making them a more reliable and predictable means of exchange, store of value, or unit of account.

In the past, regulators and economists have questioned the integrity of Tether’s token because it previously held most of its assets in commercial paper, which is a less liquid form of corporate debt.

However, more recently, Tether has replaced all of its commercial paper with US Treasuries, which are deemed one of the safest and most secure investments.

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