Tether is shutting down mining operations in Uruguay due to electricity billing issues.
Date: 2025-09-24 Author: Henry Casey Categories: BUSINESS
Tether, the issuer of the largest stablecoin, USDT, began operations in Uruguay in 2023 when it announced the launch of a large-scale mining project, Tether Energy. The main idea was to utilize renewable energy sources, which account for over 95% of the country's electricity generation. To implement the project, Tether partnered with local operator Microfin and aimed to capture up to 1% of the global Bitcoin hashrate. Over two years, the company invested over $100 million in developing mining capacity.
Despite significant investments and its status as one of the largest clients of state-owned operator UTE, the situation turned out to be a failure. According to local publication Busqueda, the energy company shut down Tether's equipment due to unpaid bills. Negotiations for preferential tariffs and debt restructuring failed, and Tether management decided to cease operations in Uruguay by the end of 2025.
Analysts note that the company's exit highlights the problem of high electricity costs in the country compared to neighboring countries such as Bolivia and Paraguay. A similar situation has already led to the departure of other international mining companies, which were also unable to afford local tariffs.
Tether representatives, however, told Cointelegraph that circulating reports of a final exit from Uruguay are not entirely accurate. They emphasized that the business restructuring process is ongoing, and the company has not yet made any official announcements about the complete closure of its projects in the country.
It is worth noting that Tether is actively developing energy initiatives in other countries. Specifically, the company previously signed an agreement with the Brazilian energy company Adecoagro to launch new Bitcoin farms that will also run on renewable energy sources.
Thus, Tether's Uruguayan experience demonstrates how crucial electricity costs are for the survival of mining projects. Even large players with billions in turnover are vulnerable if cryptocurrency mining conditions don't allow for competitiveness.
