Tether invests in Salvadoran mining startup

Article Reading Time:
1 min.

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

Tether CTO Paolo Ardoino(Paolo Ardoino) reported that the company took part in co-financing the activities of the 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.

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

Volcano Energy does not disclose the exact amountinvestments transferred by 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 amount of about $1 billion.

At the end of May, Tether announced plansprovide funds to a licensed company in Uruguay to create renewable energy and zero-carbon Bitcoin mining infrastructure.