Tether has halted its Bitcoin mining operations in Uruguay after an extended dispute with the state electricity provider, UTE, made the project financially unsustainable.
The company confirmed on November 28, 2025, that the suspension includes shutting down facilities and laying off 30 of its 38 employees in the country. What was once positioned as a major renewable-energy-powered mining hub for the stablecoin issuer has now come to an abrupt end.
A Project Once Positioned as a $500M Renewable Mining Hub
When Tether entered Uruguay in May 2023, the company presented the region as a model for “sustainable Bitcoin mining.” It outlined plans to invest up to $500 million, build multiple data-processing centers, and develop a 300 MW solar-and-wind energy park to power long-term operations. Uruguay’s strong renewable generation mix made it one of Latin America’s most attractive destinations for industrial-scale mining.
For almost a year, the project progressed quietly. But by early 2025, tensions with the national electricity provider began to surface, eventually revealing much deeper structural problems.
Millions in Unpaid Power Bills Trigger the Power Cut
The first sign of serious trouble came when UTE disconnected power to Tether’s facilities earlier this year, citing millions in unpaid invoices. Local reporting in September 2025 put the unresolved debt at $4.8 million, though Tether publicly rejected claims that it planned to fully exit the country.
Behind the scenes, Microfin, Tether’s Uruguay-based subsidiary, attempted to renegotiate the payment terms and secure a long-term electricity rate. But rising energy costs, combined with the outstanding debt, left little space for compromise.
Negotiations Collapse and the Operation Becomes Impossible to Sustain
By late 2025, negotiations between Tether and UTE had fully broken down. Without a favorable industrial tariff, the renewable-powered mining strategy that once looked promising became economically unworkable. Electricity is the primary operational cost in Bitcoin mining, and Uruguay’s rates, already high compared to regional peers, made recovery impossible.
The failure to reach a settlement forced Tether to suspend operations, shut down facilities, and release most of its local staff. The eight remaining employees will assist with winding down assets and maintaining the minimum legal presence required during the transition.
