Tether-owned Adecoagro to launch sugarcane bitcoin farm

Adecoagro plans to open a 10 megawatt sugarcane-fueled bitcoin mining pilot in Mato Grosso do Sul designed to run 1,280 mining rigs, with the company targeting a July 1 start. The facility is described as a test site to validate a biofuel-powered data center model and measure energy performance for mining operations.

The project is being managed under Adecoagro’s “Roots of the Future” agenda. Project manager Matheus Lechuga has set the July 1 target and says the installation will generate roughly 10 MW to support the rigs while testing technological and operational elements of the model.

Adecoagro plans to use bagasse, the fibrous residue left after sugarcane processing, as the feedstock for the plant’s power system. The company states that burning bagasse emits less carbon dioxide than the plant absorbs during growth, which the firm describes as at worst carbon-neutral.

Adecoagro and Tether signed a memorandum of understanding in July to explore bitcoin mining collaborations. Tether became Adecoagro’s majority owner after an all-cash acquisition valued at $600 million last year. Adecoagro manages more than 500,000 hectares across Brazil, Argentina and other Latin American countries, giving it access to agricultural byproducts and processing infrastructure.

During the pilot, Adecoagro will monitor power output, fuel logistics and emissions to assess whether a sugarcane-based plant can meet the continuous power demands of a bitcoin data center and whether the model can be scaled across its operations.

According to Matheus Lechuga, project manager: “Our data center project aims to validate our entire structure and try to apply new technological developments. Today, the project focuses on a structure geared towards Bitcoin mining, using clean energy from sugarcane. The project’s goal is to achieve energy efficiency.”

Mining operations have been seeking lower-cost and lower-emission power sources. Adecoagro’s pilot will be among the earlier examples in Latin America of combining agricultural biofuel resources with digital asset data center operations; the company will use the trial to collect performance and emissions data for future decisions.