Tether, a leading stablecoin issuer, is closing its bitcoin mining operations in Uruguay and dismissing most of its local workforce. The move comes after unsuccessful negotiations with Uruguayan authorities over energy tariffs.
The company will lay off 30 of its 38 employees as it winds down its presence in the country, according to officials from Uruguay’s Ministry of Labor.
Tether’s Investment Plans and Withdrawal
Tether had aimed to invest up to $500 million in Uruguay, planning to build three data centers and a 300-megawatt renewable energy park. The firm began investing in sustainable bitcoin mining in Uruguay in 2023.
To date, Tether reports spending more than $100 million, with an additional $50 million committed to infrastructure that was intended to be transferred to Uruguay’s national grid operator, UTE.
Energy Tariffs and Regulatory Challenges
The company cited high energy costs and regulatory obstacles as reasons for its exit. Since 2023, Tether requested a shift to a more competitive electricity rate by moving from 31.5 kV to 150 kV transmission charges.
Tether argued that this change would reduce costs for both parties and prevent unnecessary infrastructure development, but local authorities did not approve the adjustment.
