Tether to Cease Uruguay Operations, Cutting Majority of Local Staff
Tether halts Uruguay mining plans and lays off most workers after failing to secure competitive energy rates, shelving a proposed $500M investment including data centers and a renewable energy park.
Tether confirmed it is shutting down its Bitcoin mining operations in Uruguay and will dismiss 30 of its 38 employees after failing to agree on energy tariffs with authorities. The company had planned a $500 million investment in three data centers and a 300 megawatt renewable energy park but cited high electricity costs and regulatory barriers as primary reasons for withdrawal. More than $100 million had been spent and $50 million committed to infrastructure for the national grid operator UTE. Tether’s proposal to shift from 31.5 kV to 150 kV transmission charges was rejected, ending its 2023-launched sustainable mining initiative in the country.
- Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset like the U.S. dollar.
- Bitcoin Mining: The process of validating and adding transactions to the Bitcoin blockchain using computational power, often consuming substantial electricity.