Tether Denies Exit Amid $4.8M Uruguay Mining Power Dispute
Tether has rejected reports that it is abandoning its US$500 million Uruguay crypto mining venture after the national utility UTE purportedly cut power over an unpaid bill totalling US$4.8 million. The dispute covers a US$2 million invoice from May and US$2.8 million in additional fees. Tether Uruguay, launched in November 2023, says exit rumours misrepresent the situation. It is negotiating with UTE to resolve the outstanding charges and secure more favourable tariffs. The case highlights how electricity costs—US$60–180/MWh in Uruguay versus US$22/MWh in Paraguay—shape mining profitability. Tether also operates Bitcoin mining sites in Paraguay and cites Vici Mining’s 2018 shift to Paraguay over energy costs. Meanwhile, USDT adoption in Latin America is rising: Toyota, Yamaha and BYD in Bolivia now accept USDT, and MoneyGram in Colombia plans stablecoin savings features.
Neutral
The news focuses on Tether’s ongoing negotiations over a $4.8 million electricity bill dispute in Uruguay, reaffirming its commitment to mining operations and cost management. While this could briefly raise concerns about Tether’s operational stability among miners and investors—potentially affecting sentiment in mining-related sectors—it does not directly threaten USDT’s peg or its liquidity. Stablecoins like USDT are designed to maintain a 1:1 USD value, insulated from such operational disputes. As a result, the immediate and long-term impact on USDT’s price is expected to be neutral, although traders may monitor Tether’s energy cost strategies for broader implications on mining profitability and network security.