Tether is starting cryptocurrency mining using renewable energy sources and is trying to diversify its revenue mix in order to support its own stablecoin, called USDT.
The company announced on Tuesday that it plans to invest funds in renewable energy generation, marking its first entry into the energy sector.
Tether added that it is in search of “experts in the field” to support its expansion into the RE space. Bitcoin mining is notorious for its energy intensity, relying on a network of computers around the world to verify that transactions are legitimate and circulate new currencies.
“By harnessing the power of bitcoin and Uruguay’s renewable energy potential, Tether is pioneering sustainable and responsible bitcoin mining,” said Paolo Ardoino, Tether’s CTO.
“Our unwavering commitment to renewable energy ensures that every bitcoin we mine leaves a minimal ecological footprint while supporting the security and integrity of the bitcoin network.”
Earlier this month, Tether said it would change its resource management strategy to begin investing a portion of its net profits in bitcoin.
Specifically, the company pledged to use up to 15% of its net profits to buy bitcoin, mimicking strategies from companies like Tesla and MicroStrategy.
USDT is the largest stablecoin on the market, with more than $83.2 billion in supply in circulation, according to data from CoinGecko. It competes with Circle’s USD Coin and Binance’s BUSD.
Stablecoins are used by investors to open and close positions in different cryptocurrencies without converting their money back into fiat currencies.
Tether says that each of the USDT tokens in circulation is backed 1 to 1 by an equivalent amount of assets held in reserve.
The company has come under pressure in the past as regulators and economists have questioned the integrity of the assets on which its currency is based.
Tether previously held most of its assets in commercial paper, a less liquid form of corporate debt. More recently it has replaced all of its commercial paper with US Treasury securities.
Uruguay is considered a leader in electricity generation through renewable energy, accounting for more than 98% of the total, mostly wind and hydroelectric power, according to the U.S. International Trade Administration.
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