- Tether has refuted suggestions that it is halting its digital asset mining activities in Uruguay, despite an alleged US$4.8 million debt disagreement with the government’s electricity provider, UTE.
- Reports in the local press indicated that UTE had suspended electricity supply to Tether’s installations due to an outstanding US$2 million electricity bill, along with a further US$2.8 million that the company purportedly owes.
- Although Tether acknowledged the existence of the debt, it clarified that it is still “assessing the optimal path forward in Uruguay.”
Tether, a major player in the stablecoin market, has dismissed speculation that it’s closing down its cryptocurrency mining operations in Uruguay. This denial follows reports of a significant debt dispute amounting to millions of dollars with UTE, the state-owned electricity supplier.
According to local news source Telemundo, power to Tether’s mining facilities was reportedly disconnected by UTE due to an unpaid electricity bill of US$2 million (approximately AU$3.05 million) for the month of May. The report also indicated an additional US$2.8 million (around AU$4.27 million) owed by Tether related to other ventures, bringing the total claimed debt to about US$4.8 million (approximately AU$7.32 million).
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Tether’s foray into mining, branded Tether Energy, began in Uruguay in 2023. The attraction was the nation’s electrical grid, almost entirely powered by renewable energy sources. The initial goal was to contribute 1% to Bitcoin’s total global hash rate.
Tether Refutes Exit Rumors, States It’s Reviewing its Position
However, electricity expenses have proven to be higher than anticipated. Costs can fluctuate between US$60 and US$180 (AU$91 to AU$274) per megawatt hour. In contrast, Paraguay can generate power for around US$22 (AU$33) per MWh through the Itaipu hydroelectric plant, making it a more economically viable option for energy-intensive industries like digital currency mining.
Tether communicated to Cointelegraph that it remains in the process of evaluating its activities within Uruguay. A local partner is actively engaging with government representatives to find a resolution to the outstanding debt issue.
We are still determining the most effective strategy moving forward, both within Uruguay and across the broader region. While some accounts have suggested an exit from the area, these representations are not accurate.
Tether Although precise statistics regarding stablecoin usage in Uruguay are not readily available, it’s reasonable to infer that adoption is increasing within the region. This is due to USDT’s growing popularity in countries experiencing inflation and currency shortages, such as Argentina, Venezuela, Bolivia, and Colombia, all of which constitute important markets for stablecoin issuers.
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