Company suspends operations, dismisses staff, and faces $4.8 million debt dispute with state power firm.
Tether Exits Uruguayan Bitcoin Mining Operations
Tether, the issuer of USDT, has officially paused its Bitcoin mining operations in Uruguay due to escalating energy costs and unresolved financial obligations. The company confirmed the suspension following reports of a $4.8 million debt dispute with Uruguay’s state-owned electricity provider, UTE, and local operational partners.
As part of the shutdown, 30 employees were reportedly dismissed, with the Ministry of Labor officially notified of the suspension. Tether emphasized that it remains committed to long-term projects in Latin America despite halting operations in the country.
Background of Tether’s Uruguay Mining Initiative
Tether first announced its sustainable Bitcoin mining venture in Uruguay in May 2023, aiming to leverage the country’s renewable energy resources. At the time, the company highlighted plans for eco-friendly crypto operations, working alongside local partners including UTE and commercial operator Microfin.]
However, rising operational costs, combined with unpaid electricity bills totaling $4.8 million, led to financial friction and ultimately the decision to suspend mining. Industry sources report that Tether had invested approximately $100 million in mining operations and an additional $50 million in supporting infrastructure, though the company has not publicly confirmed these figures.
Tether’s Broader Latin America Strategy
Despite the Uruguay exit, Tether stated it continues to evaluate renewable energy initiatives and long-term crypto projects across Latin America. The company affirmed its focus on sustainable Bitcoin mining and infrastructure development, signaling that the suspension is a regional recalibration rather than a full retreat.
Tether’s move reflects the broader cost and regulatory challenges facing cryptocurrency mining globally, particularly in regions with rising energy prices.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.