Tether ended its Bitcoin mining operations in Uruguay after a long dispute with the state electricity provider UTE made the project financially unworkable. The company shut down facilities, released most staff, and confirmed the decision on November 28, 2025. Previous attempts to secure lower electricity rates failed as rising energy costs and accumulated debt strained its relationship with UTE.
Tether entered Uruguay in May 2023 and planned a major renewable-powered mining hub. It is intended to invest up to $500 million and build several data-processing centers. It also planned a 300 MW solar-and-wind energy park for long-term operations.
The company viewed Uruguay as a prime location due to its strong renewable energy mix. Construction progressed quietly for almost a year. However, tensions surfaced in early 2025 as electricity concerns grew.
The first major issue appeared when UTE cut power to Tether’s facilities. UTE cited millions in unpaid invoices. Local reporting later placed the unresolved debt at $4.8 million.
Tether’s Uruguay subsidiary Microfin tried to renegotiate payment terms. It also sought a long-term electricity contract to reduce operational strain. However, rising energy prices limited the room for an agreement.
Tether said it spent more than $100 million on the project. It also committed an extra $50 million for infrastructure meant for UTE’s grid. Even so, energy costs and regulatory hurdles created additional pressure on the company.
Tether has requested a shift from 31.5 kV to 150 kV transmission charges since 2023. It said the move would reduce costs for both sides. UTE did not agree to the proposed structure, and talks weakened.
By late 2025, discussions collapsed with no settlement. Electricity remained the primary operational cost in mining. Uruguay’s rates stayed higher than regional competitors. These conditions made recovery unlikely and forced Tether to consider its long-term future in the region.
Tether finally halted operations and closed its mining facilities. It laid off 30 of its 38 employees in the country. The remaining eight employees will manage the wind-down and maintain a minimum legal presence.
Local media said Tether informed Uruguay’s Ministry of Labour and Social Security of the shutdown. Ministry sources confirmed the notice. Earlier reports in September claimed Tether planned to exit due to the $4.8 million debt. At that time, the company denied the claim.
Tether said high electricity prices and the absence of a competitive industrial tariff made the project unsustainable. It also stated that these conditions did not fit the scale of its intended investment. The unresolved question now is simple: can Uruguay support future industrial mining ventures under its current energy pricing model?
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Tether ended its Bitcoin mining operations in Uruguay after rising energy costs and a failed tariff dispute with UTE made the project unworkable. The company shut its facilities and laid off most staff. The situation raises important questions for future industrial mining ventures in the country.