Tether signed a Memorandum of Understanding (MOU) with Adecoagro, a renewable energy firm in Brazil. The two companies plan to explore the viability of mining in a pre-existing 230 MW power generation infrastructure.
The MOU doesn’t involve firm investment commitments from either party, and Tether mainly seems to be providing software and expertise. Still, it could provide valuable information about new areas of expansion.
Tether’s Mining Ambitions
Tether, the world’s largest stablecoin issuer, has already been involved in the Bitcoin mining business for several years. As a matter of fact, it made fresh commitments to the sector earlier this year, and even within the last week.
Still, the firm’s new partnership with Adecoagro in Brazil represents an important expansion of this strategy.
According to the company’s press release, Tether hasn’t made a firm commitment to invest a specific amount in Brazilian crypto mining.
So far, it’s only signed a Memorandum of Understanding (MOU), vowing to explore the viability of mining with renewable energy. This involves stabilizing Adecoagro’s power generation and potentially increasing its crypto exposure.
“We’re excited to explore innovative ways to maximize the value of our renewable energy assets. This project opens the door to stabilizing a portion of the energy we currently sell on the spot market, locking in pricing, while also gaining exposure to the upside potential of Bitcoin,” claimed Mariano Bosch, Co-Founder and Chief Executive Officer of Adecoagro.
Adecoagro currently boasts over 230 MW of electrical generation capacity, and Bitcoin could help it convert surplus power into fungible assets.
Several sites will use Tether’s Mining OS to manage these operations. At the moment, it seems that Tether views this as a learning opportunity, a useful test of integrating crypto with pre-existing infrastructure.
These experiments could help Tether navigate a beleaguered mining industry under stress from several geopolitical concerns. Still, Brazil is an interesting choice for this partnership.
Although the nation is very crypto-friendly, it recently increased crypto taxes and may levy additional fees and restrictions on mining.
For now, however, this is just an experiment. Tether is investing in several novel business ventures in addition to its US regulatory compliance efforts.
The company has yet to commit many financial resources to Adecoagro and may not even directly reap profits. New research may simply complement Tether’s long-term goals in the mining sector.
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