Tether Chief Technology Officer Paolo Ardoino said that the company has co-financed El Salvador-based startup Max Keiser’s Volcano Energy.</nbsp;The startup is building a mining facility that is going to use energy from local thermal sources.
Tether said the source of the investment was its operating income, not its reserve assets.
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“The size of Tether’s investment in Volcano Energy is limited and within our own excess reserves. Stablecoin USDT insurance reserves are not affected,” the top manager assured.
Volcano Energy does not disclose the exact amount of investment given to Tether to develop the project, but reports that the startup raised a total of about $250 million in the first round of funding. Volcano Energy plans to attract international investment to build a mining site totaling about $1 billion.
In late May, Tether announced plans to provide funding to a licensed company in Uruguay to build a renewable energy and zero-carbon bitcoin mining infrastructure.