Tether to shut down Bitcoin mining operations in Uruguay over high energy costs

Tether has reportedly confirmed its intention to cease its operations based in Uruguay.

According to local media, Tether has informed Uruguay’s Ministry of Labor and Social Security during a meeting held at the headquarters of the National Directorate of Labor. Simultaneously, the USDT issuer has reportedly laid off 30 of its 38-member team, leaving only a skeleton crew behind.

Tether’s decision to pull the plug on its Uruguay operations stems mainly from the country’s high electricity costs, which have made the company’s energy-intensive Bitcoin mining business unsustainable.

Uruguay’s electricity tariffs for commercial and industrial users can range between $60 and $180 per megawatt-hour, depending on time and location, and the country does not offer the kind of competitive pricing frameworks needed to support large-scale mining. This has significantly undermined the economic feasibility of Tether’s operations in the region.

After it announced its plans to enter Uruguay back in 2023, the company projected investments of up to $500 million to sustain operations and support the construction of three data processing centers and a renewable energy park with 300 megawatts of capacity.

Of that total, more than $100 million was already spent, and another $50 million was set aside for infrastructure that would eventually be handed over to UTE and the National Interconnected System.

However, problems with energy costs began almost immediately after the launch, and by November of that year, Tether initiated negotiations with UTE, the country’s state-owned power provider, regarding more competitive rates. Tether even suggested migrating to higher-voltage tariff bands and revising the energy purchase contract to reduce costs, but the proposals were ultimately rejected.

Tether had also issued a formal warning to the agency, stating that predictable and competitive tariffs were essential for projects of this magnitude and that it would be forced to rethink its strategy in the country if no agreement was reached.

Subsequently, in June this year, Tether’s local partner reportedly began defaulting on payments, and the following month, UTE cut power supply to two Tether-related facilities after the company’s total outstanding debt reached roughly $5 million.

Back in September, some local media outlets reported that Tether had begun winding down its Uruguay operations, but at the time, Tether denied any such withdrawal and insisted it was still evaluating its plans in the region.

Tether continues expansion plans

Throughout 2025, Tether has continued expanding its global footprint through acquisitions, strategic partnerships, and infrastructure investments in more favorable jurisdictions.

The company relocated its headquarters to El Salvador earlier this year due to the country’s pro-Bitcoin policies and crypto-friendly regulations. Subsequently, it signed a memorandum of understanding with Adecoagro to power a renewable energy-driven Bitcoin mining initiative in Brazil.

More recently, it also acquired the Latin America-based digital asset custody platform Parfin, a move aimed at deepening its institutional presence in the region and bridging traditional finance with blockchain infrastructure.