Tether is shutting down its Bitcoin mining operations in Uruguay. The company behind USDT, the world’s biggest stablecoin, confirmed on Friday that it’s paused operations there because energy costs got too high.
“We can confirm that we have paused operations in Uruguay,” a Tether spokesperson said. They added they’re still committed to long-term projects in Latin America, but Uruguay’s not working out right now.
This comes after weeks of back and forth. Local news agency El Observador reported Tuesday that Tether officially notified Uruguay’s Ministry of Labor about suspending mining and laying off 30 employees. There’s also a messy $4.8 million debt dispute with UTE, the state electricity provider. Tether supposedly owes $2 million for an unpaid electricity bill plus another $2.8 million for other local projects.
Tether launched these “sustainable Bitcoin mining operations” back in May 2023, really talking up Uruguay’s renewable energy. CEO Paolo Ardoino said at the time they were leading the way in eco-friendly mining. The plan involved a $500 million investment total.
But things went south fast. Reports say Tether’s spent at least $100 million on mining operations and another $50 million on infrastructure, but rising energy costs made it unsustainable. Tether’s evaluating how to move forward in the region now.
Conclusion
Tether’s Uruguay exit highlights how rising energy costs can derail even well-funded crypto mining operations, despite initial commitments to renewable energy and substantial infrastructure investments in the region.
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