Stablecoin giant Tether has abruptly ceased its massive $500 million Bitcoin mining operation in Uruguay, citing prohibitively high energy costs and the lack of a competitive tariff framework. The company laid off 30 of its 38 staff in the country, as confirmed in a meeting with Uruguay's Ministry of Labor and Social Security (MTSS) and the National Directorate of Labor (Dinatra).
Originally launched in May 2023 through a partnership with a local licensed company, Tether projected investments of $500 million for constructing three data processing centers in Florida and Tacuarembó provinces, along with a planned wind and solar power park with a 300 megawatt capacity. However, the company spent only $100 million and had earmarked an additional $50 million before halting operations.
The shutdown was triggered when the national electricity provider UTE cut off power supply in late July over unpaid bills totaling nearly $5 million. Tether, negotiating through its local subsidiary Microfin, failed to secure long-term electricity deals. In a September letter to UTE, Tether stated, "We believe in the country’s potential, but for projects of this scale, a competitive and predictable tariff framework is essential. The failure to reach an agreement forces us to rethink our strategy."
Despite earlier denials of closure rumors, Tether's reversal underscores the challenges of energy-intensive mining in high-cost markets. The company is now shifting focus to regions like Paraguay, El Salvador, and Texas, as part of its broader aim to control 1% of the global Bitcoin network.
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