Tether is investing in renewable energy production in
Uruguay for the mining of Bitcoin in the South American country, the company
announced on Tuesday. The issuer of USDT stablecoin is also recruiting experts
in the energy sector in the region as part of the plan.
The announcement follows
release of its financial reports, where the company disclosed that it had
$1.5 billion worth of Bitcoins as part of its USDT reserves.
Additionally, the company said it was committing to use 15% of its net profits to
accumulate more BTCs to back the stablecoin.
gained importance in the cryptocurrency industry for facilitating the buying
and selling of digital assets. This factor has driven the value of USDT to a
market capitalization of more than $83 billion, according to CoinMarketCap.
Uruguay is one of the
leading destinations for renewable energy, with up to 94% of its energy
produced from renewable resources, including wind and solar power. Tether seeks
to take advantage of the country’s robust wind, hydro, and solar energy
“By harnessing the power
of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the
way in sustainable and responsible Bitcoin mining,” Tether Chief Technology
Officer Paolo Ardoino said, adding that “our unwavering commitment to renewable
energy ensures that every BTC we mine leaves a minimal ecological footprint.”
USDT Circulations on the Rise
Incorporated in the British Virgin Islands and Hong Kong,
Tether’s efforts to remain ahead of the other stablecoins in the market were
boosted by the recent
banking crisis in the US because of its disconnection to the banks in the region. Moreover, Tether
reported that the company held $2.44 billion in extra reserves for the three
months between January and March, representing an increase of up to 20% in the circulating USDT.
Tether’s growth has not been without challenges. The company has been accused
of not maintaining adequate reserves to back USDT. In 2021, Tether and crypto
exchange Bitfinex was fined
a civil monetary penalty of $42.5 million for providing misleading statements about USDT
backing by the US dollar.
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This article was written by Jared Kirui at www.financemagnates.com.