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{"id":35428,"date":"2023-05-30T15:22:00","date_gmt":"2023-05-30T15:22:00","guid":{"rendered":"https:\/\/financeworld24.com\/stablecoin-giant-tether-to-mine-bitcoin-in-uruguay-using-renewable-energy\/"},"modified":"2023-05-30T15:22:00","modified_gmt":"2023-05-30T15:22:00","slug":"stablecoin-giant-tether-to-mine-bitcoin-in-uruguay-using-renewable-energy","status":"publish","type":"post","link":"https:\/\/financeworld24.com\/stablecoin-giant-tether-to-mine-bitcoin-in-uruguay-using-renewable-energy\/","title":{"rendered":"Stablecoin giant Tether to mine bitcoin in Uruguay using renewable energy"},"content":{"rendered":"
\n
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Paolo Ardoino, Tether’s chief technology officer, said the company estimates that the excess reserve will increase by $700 million in the current quarter, which is not yet over.<\/p>\n

Justin Tallis | Afp | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n

Cryptocurrency giant Tether is setting up a bitcoin<\/a><\/span><\/span><\/span> mining operation in Uruguay using renewable energy, as the company looks to diversify the revenue mix to support its USDT<\/a><\/span><\/span><\/span> stablecoin.<\/p>\n

The company said Tuesday that it plans to invest its resources into renewable energy production, marking its first foray into the energy sector.<\/p>\n

Tether is also on the hunt for “experts in the area” to support its expansion into the renewable energy space, it said. Mining bitcoin is notoriously power-intensive<\/a>, relying on a distributed network of computers around the world to verify that transactions are legitimate and release new coins into circulation.<\/p>\n

“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, CTO of Tether.<\/p>\n

“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.”<\/p>\n

Earlier this month, Tether said it would shift its treasury management strategy to start investing a portion of its net profit in bitcoin.<\/p>\n

The company committed to use up to 15% of its net profit to purchase bitcoin, mimicking similar strategies from businesses such as Tesla<\/a><\/span><\/span><\/span> and MicroStrategy<\/a><\/span><\/span><\/span>.<\/p>\n<\/div>\n

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\"How<\/img><\/span><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Tether issues what is known as a stablecoin. This is a token that, unlike bitcoin and other cryptocurrencies, is meant to hold a stable value at all times.<\/p>\n

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 and Binance’s BUSD.<\/p>\n

Stablecoins are used by traders to move in and out of different cryptocurrencies without converting money back into fiat currencies.<\/p>\n

Tether says that each of its USDT tokens in circulation are backed 1-to-1 by an equivalent amount of U.S.-denominated assets held in reserve.<\/p>\n

The company has gotten into hot water in the past, as regulators and economists have questioned the integrity of the assets backing its token.<\/p>\n

Tether previously held most of its assets in commercial paper, a less liquid form of a corporate debt. It has more recently replaced all of its commercial paper with U.S. Treasurys.<\/p>\n

Uruguay is seen as a leader in renewable energy production, sourcing more than 98% of its electricity output from renewables, primarily wind and hydropower, according to the U.S. International Trade Administration.<\/p>\n

WATCH:<\/strong> Can crypto clean up its dirty image?<\/a><\/p>\n<\/div>\n

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\"Can<\/img><\/span><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Source: www.cnbc.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Paolo Ardoino, Tether’s chief technology officer, said the company estimates that the excess reserve will increase by $700 million in the current quarter, which is not yet over. 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