IREN - Stablecoin issuer Tether makes foray into sustainable bitcoin mining

2023-05-30 12:37:13 ET

USDT ( USDT-USD ) stablecoin issuer Tether has invested resources into a sustainable bitcoin ( BTC-USD ) mining facility in Uruguay in what will be its first foray into the energy space, the company said Tuesday in a release.

In supporting its expansion into the renewable energy sector, Tether said it's recruiting experts in the space. The traditional process of mining bitcoin ( BTC-USD ) is energy-intensive due to competition among miners who race to verify transactions on the blockchain in return for rewards.

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

The move comes after Tether laid out a new investment strategy earlier this month that would "strengthen and diversify" the reserves that back its dollar-pegged USDT ( USDT-USD ) stablecoin. As of the end of March, the company revealed that it held some $1.5B worth of bitcoin ( BTC-USD ).

Tether pointed out that Uruguay is a big player in renewable energy production, having achieved 94% of electricity generation from renewable sources , chiefly wind and solar power.

Publicly-traded companies involved in eco-friendly BTC mining include: Greenidge Generation ( GREE ), Iris Energy ( IREN ), Marathon Digital ( MARA ), Bitfarms ( BITF ) and Hut 8 Mining ( HUT ).

More on Tether

• Hard to see crypto recovery as stablecoin universe shrinks, analyst says

• SEC said to be investigating if issuing stablecoins violates investor protection laws

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