Tether abandons Uruguay bitcoin mining sites after energy supply dispute
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Tether abandoned two bitcoin mining sites in Uruguay after a dispute over energy supply, a Reuters review of documents and interviews shows. A person with direct knowledge of the project put its cost at around $120 million. Tether did not respond to requests for comment.
Key Facts
- Tether announced the launch of bitcoin mining operations in Uruguay in May 2023 without disclosing an investment value.
- Tether said the plan involved "investing resources into energy production" without providing details.
- Tether has issued nearly two thirds of all stablecoins in circulation.
- Tether CEO Paolo Ardoino and chairman Giancarlo Devasini are frequent visitors to Punta del Este, where they host private gatherings.
- American billionaire Peter Thiel is building a $10 million residential compound near Punta del Este.
Uruguay Project Collapse
Tether announced bitcoin mining operations in Uruguay in May 2023 without disclosing an investment value. The company called Uruguay the "perfect platform," citing abundant renewable energy and a robust grid. Tether planned to build two mining sites in the country as part of a spending spree it said would bring economic development, new energy infrastructure and jobs. The plans unraveled amid a dispute over the amount of energy that would be supplied for the mining operation. The mining sites were abandoned, with little left to show for the project.
Cost and Executive Presence
One person with direct knowledge of the project put its cost at around $120 million. Tether CEO Paolo Ardoino and chairman Giancarlo Devasini are frequent visitors to Punta del Este, where they host private gatherings. American billionaire Peter Thiel is building a $10 million residential compound near Punta del Este. Tether said the plan involved "investing resources into energy production" without providing details. Tether did not respond to requests for comment.
Industry Economics
Bitcoin mining is an energy-intensive process in which computers solve computational puzzles to be rewarded in bitcoin. Tether has issued nearly two thirds of all stablecoins in circulation. The aborted Uruguay investment provides a documented example of Tether's expansion into industries as varied as brain implants and soccer. Uruguay has become a hub for global fintech firms, helped by political stability and favorable tax conditions. Northumbria University assistant professor Pete Howson said bitcoin mining is "hypermobile" and does not tend to create substantial long-term jobs or benefits for the host country.
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Tether abandons Uruguay bitcoin mining sites after energy supply dispute
