Tether has officially confirmed it is ceasing cryptocurrency mining in Uruguay and laying off 30 of its 38 employees.
The reason cited is prohibitively high electricity costs and uncompetitive tariffs.
The company previously announced plans to invest $500 million in Uruguay's economy. This investment included the construction of three data centers, which require approximately 165 megawatts of electricity, and a wind and photovoltaic farm. This project required 300 megawatts of electricity. However, before the project became unviable, Tether only managed to invest $100 million of the planned amount.
The company can no longer finance this initiative, as it is not generating sufficient revenue under the current circumstances.
The company's exit plans were first reported by local media in September. Telemundo was the first to report that Tether had decided to cease cryptocurrency mining and abandoned its plans in Uruguay. This occurred after the National Electricity and Transmission Authority (ANET) 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 had additional debts of approximately $2.8 million in other local projects, bringing the total debt to approximately $4.8 million, excluding fines and additional fees.
Tether denied claims that it left Uruguay due to the $4.8 million debt. They claim these reports do not reflect the actual situation, although the debt does exist. The local firm responsible for managing cryptocurrency mining is currently in talks with the government to resolve the issue.