Bitcoin Mining Takes a Break: Tether Halts Uruguay Operations
Due to growing energy costs, Tether, the company behind USDT, the biggest stablecoin in the world, has stopped mining Bitcoin in Uruguay. According to a Tether representative, the company is still dedicated to its long-term initiatives in Latin America. Weeks after Tether refuted rumors that it intended to leave the nation, the confirmation was made. Following a $4.8 million debt battle with a state-owned electrical provider in September, these reports were released.
We can confirm that we have paused operations in Uruguay,
the spokesperson
El Observador, a local news source, reported on Tuesday that Tether officially informed Uruguay‘s Ministry of Labor that its mining operations had been suspended. The company also declared that 30 workers had been let go.
Inside Tether’s Eco-Conscious Bitcoin Mining Strategy
In May 2023, Tether first announced the start of environmentally friendly Bitcoin mining operations in Uruguay. The program was carried out in collaboration with a local licensed company that was not recognized.
By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining,
Paolo Ardoino, Tether CEO
Ardoino emphasized the company’s dedication to environmentally responsible cryptocurrency operations at the time. Industry sources have connected Tether’s mining operations in Uruguay to the National Administration of Power Plants and Electric Transmissions (UTE), despite the business not disclosing its local partners. Additionally, the reports link Tether to Microfin, a local commercial operator.
Tether Responds to Uruguayan Mining Debt Reports
Telemundo, a local news outlet, revealed in September that Tether was pulling out of its $500 million investment in mining projects in Uruguay. According to the article, the business allegedly neglected to pay UTE a $2 million electrical payment. According to reports, Tether also owed an additional $2.8 million for other regional initiatives. Tether later acknowledged the debt while denying any plans to leave the nation. The business claimed to be actively working with the government to settle the unresolved conflict.
Tether is committed to building long-term initiatives in Latin America, especially projects that harness renewable energy. We continue to evaluate the best way forward in Uruguay and the region more broadly.
Tether
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