10 MW Pilot Using Sugarcane Biomass
South American agricultural giant Adecoagro, backed by stablecoin issuer Tether, is preparing to launch a Bitcoin mining operation in Brazil that runs entirely on electricity generated from sugarcane processing waste. According to a report from FinanceFeeds, the pilot phase will have an initial capacity of 10 megawatts with roughly 1,280 mining rigs, and is scheduled to start around July 1, 2026. Unlike typical mining farms depending on the grid or fossil fuels, this facility will directly burn bagasse—the fibrous residue left after extracting juice from sugarcane—to produce dedicated power for mining activities.
Adecoagro’s Diversified Operations and Tether’s Stake
Adecoagro is a broadly diversified company with operations spanning sugar, ethanol, rice, dairy and renewable energy. Tether, the company behind the world’s largest stablecoin by market capitalization, acquired a majority share in Adecoagro earlier, marking a significant foray into the real economy. Across its South American assets, Adecoagro has built more than 230 megawatts of renewable energy generation capacity, a substantial base that underpins the new mining venture.
Brazil is one of the world’s largest sugarcane producers and boasts a mature ethanol and bioenergy industry. Bagasse has long been used for cogeneration—producing both heat and electricity—and now its application in Bitcoin mining offers a way to convert an agricultural byproduct into computing power. By consuming biomass-derived electricity on site, the mining operation could achieve lower power costs and avoid transmission losses, while also absorbing energy that might otherwise be underutilized.
Flexible Demand for Surplus Green Energy
If the pilot proves commercially and technically viable, it may encourage other agricultural and renewable energy producers to treat Bitcoin mining as a flexible demand outlet for excess generation. Mining rigs can be switched on or off quickly, making them suitable for balancing intermittent renewable supply and internal microgrids. For producers with seasonal surplus electricity, such a model could create new revenue streams and improve asset utilization. In a country like Brazil with abundant sugarcane and renewable capacity, the intersection of green energy and digital infrastructure could see accelerated development.