Tether confirms Uruguay Bitcoin mining exit amid high energy prices
Analysis
Price Impact
LowTether's exit from a specific bitcoin mining operation in uruguay due to high energy costs is a localized business decision. while notable for tether's operational strategy, it is unlikely to have a significant impact on the global bitcoin mining landscape or the overall price of btc. for usdt, it's an operational decision by the issuer and does not affect the stablecoin's peg or underlying reserves.
Trustworthiness
HighThe information is confirmed by a tether spokesperson to cointelegraph, a reputable crypto news source, and supported by local news reports. this directly comes from the involved parties.
Price Direction
NeutralThe news primarily reflects a business adjustment by tether rather than a fundamental change in bitcoin's demand/supply dynamics or the stability mechanism of usdt. the overall market sentiment for btc is driven by broader macroeconomic factors and network fundamentals, while usdt's value is tied to its reserves.
Time Effect
ShortAny potential market reaction would be brief, as this is a specific company-level operational change. it does not introduce long-term trends or systemic risks to the crypto market or the mentioned assets.
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Article Content:
Helen Partz 1 minute ago Tether confirms Uruguay Bitcoin mining exit amid high energy prices Tether halts Bitcoin mining in Uruguay, reportedly dismissing 30 staff amid rising energy costs and a $4.8 million debt dispute with state power firm UTE. Listen 0:00 13 News COINTELEGRAPH IN YOUR SOCIAL FEED Tether, the issuer of USDT, the world’s largest stablecoin, has halted Bitcoin mining operations in Uruguay due to rising energy costs. “We can confirm that we have paused operations in Uruguay,” a Tether spokesperson told Cointelegraph on Friday, adding that the company remains committed to its long-term projects in Latin America. The confirmation comes weeks after Tether denied reports that it planned to exit the country following a $4.8 million debt dispute with a state-owned electricity provider in September. According to a Tuesday report by local news agency El Observador, Tether formally notified Uruguay’s Ministry of Labor of the suspension of its mining activities and the dismissal of 30 employees. Tether’s Uruguay story: What went wrong? Tether first announced the launch of “sustainable Bitcoin mining operations” in Uruguay in May 2023, partnering with an unnamed local licensed company. “By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining,” Paolo Ardoino, now Tether CEO and then-chief technology officer , said at the time, highlighting the company’s commitment to eco-friendly crypto operations. Although Tether has not publicly named its local partners, industry reports have linked the company’s mining operations in Uruguay to the National Administration of Power Plants and Electric Transmissions (UTE) and the local commercial operator Microfin. Tether’s sustainable Bitcoin mining operation in Uruguay targeted renewable energy leadership and abundant renewable sources. Source: Tether In September, local news source Telemundo reported that Tether was abandoning its $500 million investment in Uruguayan mining operations after allegedly failing to pay a $2 million electricity bill to UTE, along with another $2.8 million owed for other local projects. Tether then denied plans to exit the country but confirmed the debt, stating it was actively engaged with the government to “resolve the outstanding friction.” Related: Tether’s 116-ton gold hoard rivals reserves of Korea and Hungary: Jefferies Of the projected $500 million investment, the company has reportedly spent at least $100 million on mining operations and another $50 million on infrastructure, according to El Observador. Tether did not confirm the figures when approached by Cointelegraph, saying: “Tether is committed to building long-term initiatives in Latin America, especially projects that harness renewable energy. We continue to evaluate the best way forward in Uruguay and the region more broadly.” Magazine: Koreans ‘pump’ alts after Upbit hack, China BTC mining surge: Asia Express # Bitcoin # Mining # Business # Latin America # Uruguay # South America # Tether # Stablecoin # Regulation # Companies Add reaction