Cryptocurrency company Tether confirmed last week that it will cease Bitcoin mining operations in Uruguay and dismiss 30 of its 38 employees after failing to secure competitive energy rates from state authorities.
The withdrawal ends the company executives’ vision of a $500 million renewable energy-powered mining hub in South America. Tether launched the Uruguay venture in May 2023, citing the country’s abundant renewable energy as perfect for sustainable cryptocurrency operations.
Officials at Uruguay’s Ministry of Labor verified the shutdown during talks with the National Directorate of Labor, local media reported. The remaining eight employees will oversee the operational wind-down and maintain minimal legal presence in the country.
Tether representatives blamed soaring electricity prices and bureaucratic roadblocks for the retreat. Industrial electricity in Uruguay costs $60 to $180 per megawatt-hour based on location and time of day, pricing that makes large-scale crypto mining financially unfeasible.
The company pursued cheaper rates starting in November 2023, suggesting a switch from 31.5-kilovolt to 150-kilovolt transmission fees. Tether told regulators the transition would slash expenses for both sides and prevent duplicate infrastructure spending. State utility UTE turned down the proposals.
“We can confirm that we have paused operations in Uruguay,” a Tether spokesperson told Cointelegraph. The company said it maintains its commitment to long-term projects elsewhere in Latin America.
The company spent more than $100 million developing mining operations and set aside another $50 million for power grid infrastructure it intended to give UTE and the National Interconnected System. Plans called for building three data processing centers, drawing approximately 165 megawatts, and a 300-megawatt renewable energy park.
A $4.8 million dispute with UTE preceded the shutdown, with $2 million stemming from May electricity bills and $2.8 million from separate projects, Uruguayan outlet El Observador reported. UTE disconnected power to Tether’s facilities earlier this year because of the unpaid bills.
Tether acknowledged owing the money in September and said it sought a resolution with government officials. The company denied exit plans at that time.
Tether issues USDT, the world’s largest stablecoin, with $184.4 billion in market capitalization. The token trades at a 1-to-1 ratio with the U.S. dollar and ranks as the highest-volume digital asset in crypto trading. The company is claimed to have logged $10 billion in profits during the first three quarters of 2025.
Related: Tether focused on gold, hires HSBC metals chiefs as holdings top $12B
The firm moved its headquarters to El Salvador in January 2025, drawn by the nation’s pro-Bitcoin stance. Tether then grew its Brazil presence through a renewable energy mining partnership with agricultural company Adecoagro and bought Latin American digital custody platform Parfin.
South American nations draw Bitcoin miners because of the cheaper electricity than North America and Europe offer. The mining process demands massive data centers packed with specialized computers that burn huge amounts of power to validate blockchain transactions and create new tokens.
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