Tether to set up renewables biz, bitcoin mine in Uruguay

Cryptocurrency stablecoin developer Tether Limited said on Tuesday that it is expanding into the energy sector to invest in renewables and will launch sustainable bitcoin mining operations in Uruguay.

It said it partnered with a “local licensed company”, which has not been named, and is working to expand the team by recruiting experts in the energy sector.

“Join us on this exciting journey as we empower Bitcoin mining in Uruguay and soon in other countries, creating a greener, more secure, and prosperous future for all,” the firm said on its recruitment web page.

Uruguay has a 94% renewables share in electricity production, a robust and reliable grid and abundant natural resources and ideal conditions to set up wind farms, solar parks and hydro power projects, Tether said of its reasons for selecting the Latin American country.

It gave no insight into the timetable or targets for the new venture.

"By harnessing the power of Bitcoin and Uruguay's renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining," stated Paolo Ardoino, CTO of Tether.

While using renewables to power bitcoin computer farms is hardly a novelty, the cryptocurrency mining business remains notorious for its energy consumption, which tends to be higher than some countries with population in the millions.

According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), the entire bitcoin network consumes around 140.8 TWh per year. If the bitcoin network were a country, it would be the 27th largest electricity consumer in the world, ranking below Malaysia, CBECI says while warning that its estimates have methodological limitations.

But, bitcoin mining does not have to be a drain on the grid and become a target for bans, as it happened in some countries. Besides plugging their computers into cheap solar, bitcoin miners can also use energy resources that would have otherwise be wasted, such as curtailed renewable energy.

CBECI says there have been instances of bitcoin mining operations using curtailed hydro in China, absorbing excess capacity during the wet season, and recovering natural gas in North America that would have been flared as an undesirable by-product of oil extraction.

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