Tether Shuts Down Mining Operations in Uruguay Due to High Electricity Costs
Tether has officially confirmed that it is shutting down its cryptocurrency mining operations in Uruguay and laying off 30 of its 38 employees. The reason is excessively high electricity costs and uncompetitive tariffs.
Earlier, the company stated that it planned to invest $500 million into Uruguay’s economy. This amount included the construction of three data centers requiring about 165 MW of power, as well as a wind and solar power plant park. The total requirement for the project was 300 MW. However, before the project became economically unviable, Tether managed to invest only $100 million of the planned amount.
The company can no longer finance the initiative, as it is not generating sufficient revenue under current conditions.
Information about Tether’s plans to exit the mining business leaked to local media in September. Telemundo was the first to report that Tether had decided to stop mining and abandon its further plans in Uruguay. This occurred after the National Administration of Power Plants and Energy Transmission cut electricity to the company’s facilities due to an unpaid $2 million electricity bill for May.
Telemundo also reported that Tether had other outstanding debts totaling roughly $2.8 million across various local projects. This brought the alleged total debt to approximately $4.8 million, excluding fines and additional fees.
Tether denied claims that it left Uruguay because of a $4.8 million debt. The company stated that these reports do not reflect the actual situation, although it acknowledged the existence of some outstanding obligations. A local firm responsible for managing mining operations is currently in discussions with the government to resolve the issue.
See also: "Monthly 125% Growth of ZEC Boosted Miner Revenues and Increased Zcash Network Hashrate"
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