Adecoagro (NYSE: AGRO), the South American agribusiness company with Tether as its majority shareholder, is set to begin Bitcoin mining operations in Brazil using electricity generated from sugarcane waste, with a target launch date of July 1, 2026, according to various local reports.
The project will be based in Ivinhema, in the state of Mato Grosso do Sul, and will start with 10 megawatts of capacity and approximately 1,280 Bitcoin mining machines.
Matheus Lechuga, the project manager at Adecoagro, confirmed the initiative during the “Roots of the Future – Technology and Innovation to Build Tomorrow” forum held on June 1, 2026.
The energy source is bagasse — 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 industrial operations.
In large-scale plants, this process produces surplus electricity beyond what the mill requires, creating an asset that can be redirected to power-intensive operations such as Bitcoin mining.
Adecoagro holds more than 230 megawatts of renewable electricity generation capacity across South America, giving the company an established energy platform before the mining rollout begins.
The 10-megawatt pilot represents a fraction of that installed base, positioning the launch as a commercial test of whether Bitcoin mining can scale as a complement to existing power sales.
Tether, the issuer of the USDT stablecoin and one of the most capitalized companies in the digital asset sector, acquired a controlling stake in Adecoagro, giving it exposure to physical commodities, agricultural land and renewable energy infrastructure. The Bitcoin mining project extends that strategy into digital asset production, with Adecoagro serving as the operational arm.
Surplus energy used for bitcoin mining
Back in September of last year, Adecoagro and Tether signed a memorandum of understanding to explore a partnership focused on Bitcoin mining powered by renewable energy in Brazil. The initiative aims to monetize surplus energy, improve grid stability and support decentralized networks by linking agricultural energy production with digital infrastructure.
Tether said it will contribute expertise in digital assets and sustainable mining, including its proprietary Mining OS, which will manage site operations and is expected to be open-sourced.
The pilot also reflects Adecoagro’s broader strategy to diversify its energy use and potentially add Bitcoin to its balance sheet, positioning it alongside traditional assets like farmland as a long-term store of value.