Sugarcane-Powered Bitcoin Mine to Launch in Brazil With Tether Backing

Tether-owned Adecoagro to Pilot Sugarcane-Fueled Bitcoin Mining in Brazil

Mining companies are migrating to cheaper, greener power sources to maintain their operations economically viable and protect the environment.

Adecoagro, one of the largest agricultural companies in Latam, has announced a new project that seeks to combine one of its trademark crops with the rise of the data center wave. The company, which manages over 500k hectares of land in Brazil, Argentina, and other countries in Latam, is launching a project to power a bitcoin mining farm with energy obtained from sugarcane.

According to local media, Matheus Lechuga, project manager at Adecoagro, presented this initiative as part of the “Roots of the Future” agenda, demonstrating the company’s future operations in Mato Grosso do Sul.

He stated:

“Our data center project aims to validate our entire structure and try to apply new technological developments. Today, the project focuses on a structure geared towards Bitcoin mining, using clean energy from sugarcane.”

Lechuga stressed that the project aims to generate 10 MW to power 1,280 mining rigs, targeting July 1st as the launch date. “The project’s goal is to achieve energy efficiency,” he highlighted.

Bagasse, a byproduct of the sugarcane refining process, can be used as a biofuel due to its high fibrous content. Burning sugarcane releases less carbon dioxide into the atmosphere than the carbon absorbed by the plant when grown. This means that the whole cycle is carbon-neutral at worst, or even better.

This is the first initiative to combine Tether’s digital origins with Adecoagro’s agricultural strengths to maximize the use of available resources and increase the company’s balance sheet. In July, the two companies signed a memorandum of understanding (MoU) to explore bitcoin mining collaborations.

Tether took over Adecoagro after making a $600 million all-cash offer, becoming the majority stakeholder last year.