Tether-backed agribusiness deploys 10-megawatt operation powered by bagasse residue
Adecoagro, the South American agribusiness company majority-owned by Tether, is set to begin Bitcoin mining operations in Brazil on July 1, 2026, using electricity generated from sugarcane bagasse waste.
The pilot operation will run 10 megawatts of capacity with approximately 1,280 mining machines, according to Bitcoin Magazine. Matheus Lechuga, project manager at Adecoagro, confirmed the initiative on June 1, 2026, at the “Roots of the Future – Technology and Innovation to Build Tomorrow” forum.
Bagasse is the fibrous residue left after sugarcane stalks are crushed during sugar and ethanol production. Sugar mills routinely burn bagasse to generate steam and electricity for their own operations. In large-scale plants, this process produces surplus electricity beyond mill requirements. The mining site is based in Ivinhema, in the state of Mato Grosso do Sul.
Adecoagro holds more than 230 megawatts of renewable electricity generation capacity across South America before the mining rollout begins. The company’s broader strategy centers on diversifying energy use and potentially adding Bitcoin to its balance sheet.
Tether’s controlling stake in Adecoagro gives the stablecoin issuer direct exposure to physical commodities, agricultural land, and renewable energy infrastructure. The partnership reflects Tether’s expansion beyond digital assets into hard infrastructure and physical production.
Tether will contribute expertise in digital assets and sustainable mining operations, including its proprietary Mining OS, which will manage site operations and is expected to be open-sourced. The operating system is designed to streamline Bitcoin mining deployment across distributed locations.
The partnership was formalized in September 2025, when Adecoagro and Tether signed a memorandum of understanding for Bitcoin mining collaboration. The pilot represents an early test of converting agricultural waste streams into digital asset production at scale.
Adecoagro trades on the New York Stock Exchange under the ticker AGRO. The company has not disclosed total investment amount, expected Bitcoin production rates, or revenue projections for the mining operation.
