- Tether has denied reports that it is shutting down its mining operations in Uruguay following a US$4.8 million debt dispute with the state-owned electricity company, UTE.
- Local reports had claimed that UTE cut power to Tether’s facilities over an unpaid US$2 million electricity bill and that the company owed an additional US$2.8 million.
- While Tether did not deny the debt, it stated that it is still “evaluating the best way forward in Uruguay”.
Stablecoin giant Tether will keep running its mining facilities in Uruguay, rejecting reports that it is shutting down operations following a multimillion-dollar debt dispute with the state-owned electricity provider UTE.
Local outlets Telemundo reported that UTE cut power to Tether’s mining facilities over an unpaid US$2 million (AU$3.05 million) electricity bill for May and that the company owes a further US$2.8 million (AU$4.27 million) tied to other projects, bringing total liabilities to about US$4.8 million (AU$7.32 million).
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The company launched its Tether Energy mining division in Uruguay in 2023, attracted by a national grid powered almost entirely by renewables. Its target was 1% of Bitcoin’s global hash rate.
Tether Denies Rumours, Says It’s Assessing Situation
But electricity costs proved higher than expected, as they can range from US$60 to US$180 (AU$91, AU$274) per megawatt hour. By comparison, Paraguay produces power at about US$22 (AU$33) per MWh through the Itaipu hydropower plant, making it more competitive for energy-intensive industries such as crypto mining.
Tether told Cointelegraph it is still assessing operations in Uruguay and that a local partner is in discussions with the government to resolve the debt.
We continue to evaluate the best way forward in Uruguay and the region more broadly. While reports have speculated an exit from the region, these do not accurately reflect the situation.
TetherWhile Uruguay’s specific figures regarding stablecoin usage are not available, it can be safe to assume the regional uptake is rising, with USDT adoption accelerating across countries with inflation and currency shortages like Argentina, Venezuela, Bolivia, and Colombia, all of which are key markets for issuers.
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