Exclusive: Tether Could Set Up Mega Bitcoin Mining Farm Using Brazilian Energy
Written by Cassio Gusson, translated from Cointelegraph Brasil
The Tether, issuer of the largest stablecoin in the cryptocurrency market, may soon utilize energy from Brazil in its mega Bitcoin mining farm. According to information shared with Cointelegraph Brazil, the global giant is planning to install its BTC farm in Paraguay to tap into the hydroelectric energy from Itaipu.
According to the source, Tether has always had plans to commence Bitcoin mining operations; however, regulatory issues and uncertainty about regulatory matters reportedly delayed the company's plans.
Nonetheless, during the bull market of 2020-21, the company's plans were revived, coinciding with the entrance of Brazilian entrepreneur Rocelo Lopes into the Tether group, which also involves Bitfinex. Lopes, who previously operated a BTC mining farm in Paraguay and was the first to anticipate the arrival of the Chinese in the region back in 2019.
Lopes is said to have aided Tether in establishing connections with authorities and ANDE, the energy company of Paraguay. Furthermore, Lopes is believed to have assisted with infrastructure matters such as securing land in the region and utilizing containers to facilitate the cooling process of the facilities, given the dry and hot climate of the area.
Tether's Mining Farm Could Be Installed in Paraguay
According to the investigation by Cointelegraph, the entire infrastructure is currently being optimized to accommodate all the equipment, with tests using ASICs having already been conducted and yielding favorable results. The full operation is expected to commence in September of this year.
When contacted by Cointelegraph, Tether did not confirm the exact location of the equipment installation and merely stated that it would be in Latin America (excluding countries like El Salvador in Central America).
"The site is progressing well, the entire team is super excited and working tirelessly to commence operations in the coming weeks," declared Tether's CTO, Paolo Ardoino.
While not confirming Paraguay as the site of the operation, he emphasized that the company is working on a mining software called Moria, which provides data analysis regarding energy production at Bitcoin mining locations, primarily focusing on renewable energy sources, such as the energy generated by Itaipu (a binational power plant that supplies both Brazil and Paraguay).
"If the energy used by the mine is wind or solar, there are optimization parameters, such as the predicted wind speed for a specific day or a specific time of day, which can be used to speed up some of the miners and increase production," he said.
Paraguay has become the primary Bitcoin mining hub in South America. In July of this year, the Canadian company Bitfarms announced the installation of a farm in the regions of Iguazú and Villarrica. The company is one of the most significant players in the sector, with a hashrate exceeding 5 EH/s.
The American company Sazmining also announced expansion into Paraguay. The company's farm will be located near the Itaipu Dam. The project's roadmap envisions the farm beginning mining operations in September, with an initial capacity of 5 MW.
Brazil Aims to Review Itaipu Agreement
The Brazilian government aims to review the energy supply agreement of the Itaipu hydroelectric plant, which was built through a binational agreement between Brazil and Paraguay in the Foz do Iguaçu region. The agreement was signed in 1973 and stipulates a revision of terms after 50 years.
In the upcoming revision to be discussed with Paraguay until September, the Brazilian government intends to balance the terms to better serve both countries, potentially leading to a reduction in the cost of energy supplied to Brazil.
According to the Minister of Mines and Energy, Alexandre Silveira, there are already scheduled meetings between Brazilian President Luiz Inácio Lula da Silva (PT) and Paraguayan President Santiago Penã to discuss the matter.
"The goal is to have an agreement that serves the interests of both countries, and this is achieved through extensive debate. The visit of the Paraguayan president demonstrates that Brazil is once again engaging with the world," the minister stated.
The binational Itaipu plant is strategic for both Brazil and Paraguay, as it provides 8.7% of the energy consumed in Brazil and 86.4% in Paraguay, with 20 generating units and 14,000 MW of installed capacity.
In the event of a revised agreement, it remains uncertain how this might impact Bitcoin miners in the region, as the focus of the revision lies in energy tariffs and a potential increase in supply to Brazil.