Tether invests in sustainable Bitcoin mining in Uruguay

Tether, the company behind the stablecoin USDT, has invested in a bitcoin mining facility in Uruguay that is focused on sustainable energy production, according to a press release issued on Tuesday. The company is working with a local licensed company and is currently hiring, but no details regarding the investment or partner firm were disclosed. Tether recently announced plans to invest a portion of its profits in bitcoin, including regular purchases of the cryptocurrency and infrastructure funding. The company disclosed that it held around $1.5 billion of bitcoin as of the end of March. Paolo Ardoino, Tether’s chief technology officer, said that Tether is “leading the way in sustainable and responsible Bitcoin mining” by leveraging the power of bitcoin and Uruguay’s renewable energy capabilities. South America has become increasingly attractive to foreign crypto investors, particularly in bitcoin mining, due to fewer opportunities in North America. However, this has raised concerns in some countries, such as Paraguay, which has seen an influx of miners looking to use its unused hydropower. Tether’s USDT is currently the largest stablecoin in the market, with a capitalization of $83 billion. It is backed primarily by assets such as US government-issued debt, but also by gold and secured loans to undisclosed parties. The company’s net profits for Q1 2023 were $1.5 billion, largely due to rising yields over the past year. Edited by Stephen Alpher. UPDATE (May 30, 13:55): Adds context about South America.