Adecoagro, a South American agribusiness backed by Tether as its majority shareholder, is launching a Bitcoin mining pilot in Ivinhema, Mato Grosso do Sul, Brazil, powered entirely by surplus electricity from sugarcane processing. The operation is set to go live around July 1, 2026, with an initial capacity of 10 megawatts and approximately 1,280 mining machines. The project was unveiled during the Raízes do Futuro event, where company representatives and state officials emphasized the initiative's alignment with renewable energy goals.
The electricity will come from bagasse, the fibrous residue left after crushing sugarcane for sugar and ethanol. Mills burn bagasse in high-efficiency boilers to generate steam and power, often producing more electricity than needed for internal operations. This surplus will now feed a dedicated data center for Bitcoin mining, adding a third revenue stream to Adecoagro’s existing agro-industrial activities. The company already operates over 230 megawatts of renewable generation capacity across South America, so the 10-megawatt pilot represents a deliberate, small-scale validation phase rather than a full commercial rollout.
Project manager Matheus Lechuga described the effort as a test to validate the company’s structure and explore new technology developments. Energy efficiency is a core operational target. The mining site will leverage Adecoagro’s own power matrix and local resources, positioning it close to agricultural production and biomass-based generation. Tether’s involvement extends beyond ownership: the mining rigs will run Tether’s proprietary Mining OS, which the company announced in July 2025 would be open-sourced. Tether CEO Paolo Ardoino has previously stated ambitions to become the world’s largest Bitcoin miner, with a reported $2 billion already invested in energy and mining infrastructure.
The Mato Grosso do Sul government played a supporting role by facilitating environmental licensing and business structuring. Governor Eduardo Riedel also signed an agreement with Google to expand digital tools in schools and announced a georeferenced postal address system for rural properties, signaling a broader push to blend technology, innovation, and rural services in the state.
For Adecoagro, the mining pilot represents a convergence of agribusiness and digital assets. By converting bagasse into Bitcoin, the company tests data center efficiency within its own production chain while capitalizing on a predictable and scalable surplus energy source. The project could serve as a model for other agricultural regions seeking to monetize waste biomass through crypto mining.
