The post Tether to shut down Bitcoin mining operations in Uruguay over high energy costs appeared on BitcoinEthereumNews.com. Tether has reportedly confirmed its intention to cease its operations based in Uruguay. According to local media, Tether has informed Uruguay’s Ministry of Labor and Social Security during a meeting held at the headquarters of the National Directorate of Labor. Simultaneously, the USDT issuer has reportedly laid off 30 of its 38-member team, leaving only a skeleton crew behind. Summary Tether informed Uruguay’s Ministry of Labor that it will cease local operations. The company has laid off 30 members of staff. Uruguay’s high power tariffs reportedly made Tether’s bitcoin mining operations unsustainable. Tether’s decision to pull the plug on its Uruguay operations stems mainly from the country’s high electricity costs, which have made the company’s energy-intensive Bitcoin mining business unsustainable. Uruguay’s electricity tariffs for commercial and industrial users can range between $60 and $180 per megawatt-hour, depending on time and location, and the country does not offer the kind of competitive pricing frameworks needed to support large-scale mining. This has significantly undermined the economic feasibility of Tether’s operations in the region. After it announced its plans to enter Uruguay back in 2023, the company projected investments of up to $500 million to sustain operations and support the construction of three data processing centers and a renewable energy park with 300 megawatts of capacity. Of that total, more than $100 million was already spent, and another $50 million was set aside for infrastructure that would eventually be handed over to UTE and the National Interconnected System. However, problems with energy costs began almost immediately after the launch, and by November of that year, Tether initiated negotiations with UTE, the country’s state-owned power provider, regarding more competitive rates. Tether even suggested migrating to higher-voltage tariff bands and revising the energy purchase contract to reduce costs, but the proposals were ultimately rejected. Tether… The post Tether to shut down Bitcoin mining operations in Uruguay over high energy costs appeared on BitcoinEthereumNews.com. Tether has reportedly confirmed its intention to cease its operations based in Uruguay. According to local media, Tether has informed Uruguay’s Ministry of Labor and Social Security during a meeting held at the headquarters of the National Directorate of Labor. Simultaneously, the USDT issuer has reportedly laid off 30 of its 38-member team, leaving only a skeleton crew behind. Summary Tether informed Uruguay’s Ministry of Labor that it will cease local operations. The company has laid off 30 members of staff. Uruguay’s high power tariffs reportedly made Tether’s bitcoin mining operations unsustainable. Tether’s decision to pull the plug on its Uruguay operations stems mainly from the country’s high electricity costs, which have made the company’s energy-intensive Bitcoin mining business unsustainable. Uruguay’s electricity tariffs for commercial and industrial users can range between $60 and $180 per megawatt-hour, depending on time and location, and the country does not offer the kind of competitive pricing frameworks needed to support large-scale mining. This has significantly undermined the economic feasibility of Tether’s operations in the region. After it announced its plans to enter Uruguay back in 2023, the company projected investments of up to $500 million to sustain operations and support the construction of three data processing centers and a renewable energy park with 300 megawatts of capacity. Of that total, more than $100 million was already spent, and another $50 million was set aside for infrastructure that would eventually be handed over to UTE and the National Interconnected System. However, problems with energy costs began almost immediately after the launch, and by November of that year, Tether initiated negotiations with UTE, the country’s state-owned power provider, regarding more competitive rates. Tether even suggested migrating to higher-voltage tariff bands and revising the energy purchase contract to reduce costs, but the proposals were ultimately rejected. Tether…