Tether is shutting down its mining initiative in Uruguay amid high energy tariffs.
Date: 2025-12-01 Author: Henry Casey Categories: BUSINESS
The company that issues the USDT stablecoin has permanently halted its mining operations in Uruguay, notifying the country's Ministry of Labor. The project, which launched in May 2023, was intended as a long-term investment in cryptocurrency mining powered by renewable energy. At the time, the company emphasized the high potential of the region, where wind and solar power provide significant generation.
Tether's local partner was an unnamed market participant, which, according to media reports, may be associated with Microfin. It is credited with managing two facilities built for industrial mining. However, the project subsequently encountered financial and operational complications. In September 2025, reports emerged of nearly $5 million in debt to government agencies. Unofficial sources claimed that this was the reason for the power outages at the facilities back in July.
Tether acknowledged the debt, but at the time publicly denied plans to wind down its operations in Uruguay, claiming to be seeking a mutual solution with the authorities. Despite these statements, the company later notified regulators that it was ceasing operations. High electricity prices were a key factor in the decision, according to documents submitted to the Ministry of Labor and obtained by El Observador. Along with the closure of its facilities, the company laid off almost its entire staff, leaving only eight out of its 38 employees.
A Tether representative also confirmed in a comment to Cointelegraph that operations in the country had ceased. The company also emphasized that it continues to view Latin America as a strategic region and does not intend to abandon projects in this area altogether.
The initial concept called for investing up to $500 million in developing 165 MW of capacity, as well as constructing additional energy infrastructure—a wind farm and 300 MW of solar panels. According to El Observador, approximately $150 million had already been allocated for implementation, including work by the National Authority for Electricity and Transmission (UTE) and the National Interconnected Grid. However, the authorities refused to approve the preferential tariff the company had repeatedly requested. Ultimately, operating the equipment proved too costly, and further development of the project was deemed pointless.
It's worth recalling that Tether CEO Paolo Ardoino had previously promised to make the company a leader in global Bitcoin mining by the end of 2025. Now, however, the strategy will likely be revised, taking into account the experience of the Uruguayan project.
