Tether has officially shut down its bitcoin-mining operations in Uruguay after determining that the country’s energy costs were too high to sustain the project. The company explained that the lack of a competitive electricity tariff — especially for a project of this scale — made continued operations impossible.
Tether entered Uruguay in 2023 with big ambitions. It partnered with a local company and announced plans for a major investment estimated at around half a billion dollars. The vision included building multiple data-processing centers across regions like Florida and Tacuarembó, along with a large 300-megawatt hybrid wind-and-solar energy facility designed to power the mining infrastructure. By the time operations began slowing down, the company had already spent roughly $100 million and had allocated another $50 million toward infrastructure that was intended to be transferred to the country’s national electricity grid.
However, the company soon ran into major obstacles. Uruguay’s energy prices were significantly higher than expected, especially due to the lack of access to more cost-effective high-voltage transmission contracts. Instead, Tether was forced to work with standard tariffs that made large-scale mining increasingly unprofitable. Negotiations to adjust the tariffs continued for nearly two years but never resulted in an agreement.
The situation worsened in mid-2025 when the national electricity provider cut power to Tether’s facilities. The decision reportedly stemmed from several million dollars in unpaid electricity bills that had built up as the company struggled with the rising operational costs. Losing power crippled mining output and effectively halted expansion plans, causing further financial strain.
Eventually, Tether notified Uruguay’s Ministry of Labor and Social Security that it would be shutting down its operations and dismissing the majority of its local workforce. Out of its 38 employees in the country, 30 were laid off as the company began the exit process.
In summary, despite bold plans and significant early investment, Tether’s Uruguayan project collapsed under the weight of high electricity prices, unresolved tariff negotiations, and accumulating energy debt. The company ultimately determined that it could not maintain operations or continue investing under the existing conditions, leading to a full withdrawal from Uruguay’s crypto-mining sector.
Source: Cryptonews Edited by Sonarx