Tether, the issuer of the USDT stablecoin, has officially confirmed it has paused its Bitcoin mining activities in Uruguay, citing surging energy prices as the main reason behind the move.
Operations suspended in Uruguay
A Tether spokesperson told Cointelegraph that the company remains committed to its long-term plans in Latin America but stated:
“We can confirm that we have paused operations in Uruguay.”
This confirmation comes after earlier denials that Tether would exit the country, following reports of a $4.8 million debt dispute with Uruguay’s state electricity provider UTE.
According to local news outlet El Observador, Tether has now formally notified Uruguay’s Ministry of Labor about the suspension and has dismissed 30 staff members.
Background of Tether’s mining efforts
Tether launched its “sustainable Bitcoin mining operations” in Uruguay in May 2023, partnering with a local licensed company.
Paolo Ardoino, then chief technology officer and now CEO, previously emphasized the company’s aim to leverage Uruguay’s renewable energy for environmentally friendly mining.
Industry reports have linked Tether’s operations to UTE and the commercial operator Microfin.
Debt dispute and investment shortfall
In September, reports surfaced that Tether was abandoning a $500 million mining investment after allegedly failing to pay a $2 million electricity bill, with an additional $2.8 million owed on other projects.
While Tether denied plans to exit at the time, it did confirm the outstanding debt and said it was actively working with the government to resolve the issue.
Of the $500 million originally planned for investment, at least $100 million reportedly went to mining operations and another $50 million to infrastructure.
Tether declined to confirm these figures but reiterated its commitment to building renewable energy initiatives across Latin America.
