Company Tether officially confirmed that it is terminating mining cryptocurrency in Uruguay and is laying off 30 of its 38 employees. The reason is exorbitant electricity costs and uncompetitive tariffs.
The company previously announced plans to invest $500 million in Uruguay’s economy. This amount included the construction of three data centers, which require approximately 165 MW of electricity, and a wind and photovoltaic power plant. This project required 300 MW of electricity. However, before the project became economically unviable, Tether Only $100 million of the planned amount was invested.
The company can no longer finance this initiative, as it does not generate sufficient income under the current conditions.
Information about the plans to exit the business leaked to local media back in September. Telemundo was the first to report that Tether decided to stop mining cryptocurrency and abandoned further plans in Uruguay. This occurred after the National Authority for Electricity and Transmission cut off power to the company’s facilities due to non-payment of a $2 million electricity bill for May.
Telemundo also reported that Tether There were also other debts totaling approximately $2,8 million in other local projects, bringing the total debt to approximately $4,8 million, excluding penalties and additional fees.
В Tether They denied claims that the organization left Uruguay due to a $4,8 million debt. They claim this news does not reflect the actual situation, although the debt does exist. The local firm responsible for managing cryptocurrency mining is currently negotiating with the government to resolve the issue.