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LUXEMBOURG - Agribusiness firm Adecoagro S.A. (NYSE:AGRO), a profitable agriculture company with a market capitalization of $920 million and strong financial metrics according to InvestingPro, and digital asset company Tether Holdings have signed a Memorandum of Understanding to explore bitcoin mining powered by renewable energy, according to a press release issued Thursday.
The collaboration aims to utilize Adecoagro’s renewable energy assets across South America to support bitcoin mining operations. The company, which has demonstrated robust operational performance with a 20% revenue growth in the last twelve months, currently has more than 230 MW of electrical generation capacity from renewable sources.
Mariano Bosch, Co-Founder and CEO of Adecoagro, said the project could help stabilize a portion of the energy the company currently sells on the spot market while gaining exposure to bitcoin.
Tether CEO Paolo Ardoino noted that the initiative aligns with the company’s strategy to support resilient energy infrastructure and decentralized networks through renewable-powered bitcoin mining.
The project will use Tether’s Mining OS for site management, which the company plans to open-source in the coming months. Adecoagro’s Independent Committee has reviewed and approved the pilot project in accordance with the company’s bylaws regarding Related Party Transactions.
Adecoagro operates 210,400 hectares of farmland and industrial facilities across Argentina, Brazil, and Uruguay, producing over 3.1 million tons of agricultural products and more than 1 million MWh of renewable electricity annually.
The companies indicated they will provide additional updates as the project develops. The partnership represents an intersection of agriculture, energy, and cryptocurrency technologies, potentially creating new revenue streams from existing renewable energy assets.
In other recent news, Adecoagro has undergone a significant reshuffling of its Board of Directors following Tether Investments’ acquisition of a 70% stake in the company. The transition saw the resignation of five board members and the appointment of five new directors, including Juan José Sartori Piñeyro as the new Executive Chairman. This change comes as the company aims to expand and develop further, with the new board members bringing diverse expertise in various sectors. Meanwhile, BofA Securities downgraded Adecoagro’s stock rating from Neutral to Underperform, lowering the price target to $10.80, citing increased financial risks and strategic uncertainties. The firm noted a rise in the company’s weighted average cost of capital and concerns over the liquidity of Adecoagro’s shares. Similarly, Morgan Stanley also downgraded Adecoagro’s stock rating to Underweight, reducing the price target to $10. The firm highlighted potential challenges due to reduced share liquidity and uncertainties regarding the strategies of Adecoagro’s new controlling shareholder. Both firms emphasized the importance of monitoring Tether Investments’ influence on Adecoagro’s future operations and strategies.
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