Global Courant 2023-05-31 13:32:21
Paolo Ardoino, Tether’s chief technology officer, said the company estimates that excess reserve will increase by $700 million in the current quarter, which is not yet over.
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Cryptocurrency giant Tether is setting up a bitcoin mining operations in Uruguay using renewable energy as the company seeks to diversify its revenue mix to support its business USDT stable coin.
The company said Tuesday it plans to invest its resources in renewable energy production, marking its first foray into the power sector.
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Tether added that it is also looking for “experts in the field” to support the expansion into the renewable energy space. Bitcoin mining is notoriously energy intensive, relying on a distributed network of computers around the world to verify that transactions are legitimate and to bring new coins into circulation.
“By leveraging the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is at the forefront of sustainable and responsible Bitcoin mining,” said Paolo Ardoino, CTO of Tether.
“Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal environmental footprint, while preserving the security and integrity of the Bitcoin network.”
Earlier this month, Tether said it would shift its treasury management strategy to start investing a portion of its net earnings in bitcoin.
The company has committed to use up to 15% of its net profits to buy bitcoin, mimicking strategies of companies such as Tesla And MicroStrategy.
Tether issues a so-called stablecoin – a token that, unlike bitcoin and other cryptocurrencies, is intended to maintain a stable value at all times.
USDT is the largest stablecoin in the market, with a circulating supply of over $83.2 billion, according to data from CoinGecko. It competes with Circle’s USD Coin and Binance’s BUSD.
Stablecoins are used by traders to move in and out of various cryptocurrencies without converting cash back to fiat currencies.
Tether says each of its USDT tokens in circulation is backed 1-to-1 by an equivalent amount of US-denominated assets held in reserve.
The company has run into hot water in the past as regulators and economists have questioned the integrity of the token’s underlying assets. Tether previously held most of its assets in commercial paper, a less liquid form of corporate debt. It has more recently replaced all of its commercial paper with US Treasurys.
According to the US International Trade Administration, Uruguay is recognized as a leader in renewable energy production, sourcing more than 98% of its electricity production from renewable sources, primarily wind and hydro.
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