Tether, the company behind the USDT stablecoin, has confirmed plans to exit its Bitcoin mining operations in Uruguay, citing energy costs as the primary obstacle. Local reports indicate Tether informed the Ministry of Labor and Social Security of the decision. It is simultaneously laying off 30 of its 38-member team to retain only a minimal crew. The high cost of commercial and industrial electricity in Uruguay, which ranges significantly higher than rates in competitive mining jurisdictions, made the energy-intensive business financially unsustainable.
The stablecoin issuer’s initial venture in 2023 projected investments up to $500 million for data centers and renewable energy capacity. However, the company faced immediate friction with the state-owned power provider, UTE, over competitive pricing. Negotiations to secure lower tariffs or revise energy purchase contracts were ultimately rejected, despite the firm’s formal warning that competitive rates were essential for a project of this scale to continue.
This withdrawal highlights the narrow profit margins and reliance on stable energy pricing within the global Bitcoin mining sector. While Tether is reportedly relocating its focus to jurisdictions with more favorable energy and regulatory frameworks, such as El Salvador and Brazil, the Uruguayan exit serves as a cautionary institutional example of how rapidly escalating operational expenses can challenge large-scale, capital-intensive digital asset infrastructure projects.
