Tether said reports that it has exited Uruguay “do not accurately reflect the situation” and the local mining operator is working with the government to “resolve friction.”
Tether Uruguay reports of an exit are inaccurate: Tether confirms ongoing evaluation in the region and says the local miner and Uruguay’s state power operator are engaged in talks to resolve a roughly $4.8 million billing dispute and operational friction.
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Tether denies an exit from Uruguay and remains engaged in regional planning.
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Tether’s local mining operator is negotiating with the state utility over unpaid bills and operational terms.
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Electricity costs in Uruguay (≈$60–$180/MWh) are higher than Paraguay (~$22/MWh), affecting miner economics.
Tether Uruguay: official denial of exit amid billing dispute; read the facts and next steps. Stay informed with COINOTAG.
What happened with Tether in Uruguay?
Tether Uruguay faced local media reports that it had abandoned mining operations after the state power utility cut power over unpaid bills. Tether issued a statement saying those reports “do not accurately reflect the situation” and that the local operator is working with the government to resolve the dispute.
How did the billing dispute arise and what are the figures?
Local reporting named a total liability near $4.8 million, citing a $2 million bill for May plus roughly $2.8 million in additional local project charges. Tether acknowledged the outstanding issue but described ongoing discussions between the local mining operator and the government to resolve the friction.
How is Tether responding to the claims?
Tether told a news outlet that it is “evaluating the best way forward in Uruguay and the region more broadly.” The company said that conjecture about an exit does not reflect the current status and that it supports a constructive, long-term path forward for sustainable regional opportunities.
Why does electricity cost matter for crypto miners in Uruguay?
Electricity can constitute roughly 80% of mining operating costs. Uruguay’s electricity prices range from about $60 to $180 per megawatt-hour (MWh), higher than Paraguay’s ~ $22/MWh from the Itaipu hydro plant. Higher local power costs reduce competitiveness for energy-intensive operations.
What precedents exist for miners leaving Uruguay?
In 2018, Vici Mining relocated facilities from Uruguay to Paraguay to capture lower power costs. Industry engineers highlight that when electricity is a dominant cost, small differences in price can determine whether operations remain viable in a country.
Stablecoins and mining context: what else is happening in LATAM?
Stablecoin adoption in LATAM is rising even as mining economics shift. Vehicle manufacturers in Bolivia — Toyota, Yamaha, and BYD — began accepting USDT for payments. In Colombia, MoneyGram’s crypto payments app is positioning stablecoins as a dollar-saving tool amid peso weakness.
Frequently Asked Questions
Did Tether confirm it left Uruguay?
No. Tether explicitly denied reports of an exit and said the situation is being evaluated while the local operator and government work to resolve outstanding issues.
Who reported the initial shutdown claims?
Local Uruguay media outlets reported the outage and billing claims; subsequent company comments were provided to a major crypto news outlet. All such reports are being addressed by the operator and Tether.
Key Takeaways
- Tether Uruguay status: Tether denies having exited and confirms ongoing evaluation of regional operations.
- Financials: Local reports put disputed charges near $4.8 million; parties are negotiating.
- Policy implication: The dispute highlights how electricity pricing affects the competitiveness of energy-intensive industries.
Conclusion
The Tether Uruguay episode underscores the sensitivity of crypto mining to local power economics and regulatory dynamics. Tether Uruguay says it remains engaged while the local operator and the state utility negotiate a resolution. Expect updates as negotiations proceed and policy responses become clearer.
