September 21, 2023

Tether invests in Salvadoran mining startup

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Tether invests in Salvadoran mining startup

Stablecoin issuer Tether has supported startup Volcano Energy, which is going to create an environmentally friendly bitcoin mining farm in El Salvador.

Tether CTO Paolo ArdoinoArdoino announced that the company has co-financed Salvadoran startup Max Keiser Volcano Energy. The startup is building mining facilities that are going to use the energy of local thermal springs.

Tether noted that the source of investment was income from the company's operating activities, and not reserve assets.

“Tether's investment in Volcano Energy is limited and within our own excess reserves. The USDT stablecoin insurance reserves are not affected,” the top manager assured.

Volcano Energy does not disclose the exact amountinvestments transferred to Tether for the development of the project, but reports that in total in the first round of financing, the startup raised about $250 million. Volcano Energy plans to attract international investments for the construction of a mining site for a total of about $1 billion.

At the end of May, Tether announced plans to providefunds of a licensed company in Uruguay to create renewable energy sources and zero-carbon bitcoin mining infrastructure.