Bitcoin To Be Mined With Sugarcane Power?

Tether-backed agricultural giant Adecoagro is moving into Bitcoin $BTC mining using an unconventional energy source: sugarcane waste. The company plans to convert bagasse, the fibrous byproduct left over after sugarcane processing, into electricity to power its mining operations in Brazil.

From Sugarcane Fields to Mining Rigs

Tether Holdings and Adecoagro S.A. (NYSE: AGRO) signed a Memorandum of Understanding to explore a strategic collaboration focused on Bitcoin mining. The first phase of the project will deploy 1,280 miners, with a planned launch in early July 2026.

Mining hardware will be located adjacent to biogas-fired thermoelectric plants in the Ivinhema and Angélica areas of the Brazilian state of Mato Grosso do Sul, owned by Adecoagro. Adecoagro has more than 230 MW of electrical generation capacity from renewable sources across South America.

In addition to monetizing surplus energy, Adecoagro recognizes that Bitcoin may become a new source of long-term value, like its farmland assets, and plans to use this mining project to initiate certain strategic exposure to Bitcoin in its balance sheet.

A Strategic Play for Tether and Adecoagro

Tether Investments acquired a 70 percent controlling stake in Adecoagro. The partnership is designed to solve a practical problem for the agribusiness: Adecoagro currently sells excess renewable energy on spot markets, and the Bitcoin mining collaboration offers an opportunity to stabilize energy revenues through long-term pricing agreements while gaining exposure to Bitcoin's potential upside.

The project will be operated using Tether's Mining OS for site management, which will be open-sourced in the coming months. Tether aims to become the largest Bitcoin miner by the end of the year and has invested $2 billion in energy and mining operations, according to CEO Paolo Ardoino.

The partnership represents a growing trend of traditional energy producers turning to Bitcoin mining as a way to monetize stranded or surplus renewable energy capacity, particularly in regions where grid infrastructure may be limited or where energy prices are volatile.

Sources:
Tether Official Announcement: Tether and Adecoagro to Power Bitcoin Mining With Renewable Energy in Brazil
Adecoagro Investor Relations: Adecoagro and Tether to Power Bitcoin Mining With Renewable Energy in Brazil
Data Center Dynamics: Tether to Place Cryptomining Hardware at Biogas Plant in Brazil