Tether has halted its cryptocurrency mining operations in Uruguay after energy costs and tariff disputes crippled its $500 million project in September 2025. The shutdown also led to the layoffs of 30 employees, which the company confirmed to the Ministry of Labor and Social Security (MTSS).
Energy Tariff Friction Drives Abrupt Withdrawal
Following a meeting at the National Directorate of Labor headquarters, Tether officially notified MTSS of the layoffs. The company attributed the decision to rising electricity charges, particularly the 31.5 kV tariff applied to its Florida site, which made operations financially unsustainable. Since November 2023, Tether has repeatedly requested tariff revisions, but proposals have failed to gain approval from national energy authorities.
Unpaid electricity arrears and intermittent power cuts from the National Administration of Power Plants and Electrical Transmissions (UTE) further disrupted operations at Tether’s Florida and Tacuarembó facilities. The company had sought migration to 150 kV tariffs and amended power purchase rules to stabilize costs, but these proposals did not move forward with UTE.
The company acknowledged that predictable tariffs remained essential for large-scale projects. It stressed the need for scale-driven investment to formalize communication with UTE. Officials recorded the withdrawal as a direct consequence of unresolved energy tariff disputes.
Payments Dispute Led to Power Shutdown
The final closure followed a July power cut by UTE due to unpaid bills totaling nearly $5 million. However, negotiations continued through Tether’s local subsidiary Microfin. The failure to settle arrears ultimately triggered the supply suspension.
Notably, the conflict emerged soon after Tether’s major commitments in Uruguay. In May 2023, CEO Paolo Ardoino praised the country’s stable electrical grid and modern capacity. The firm projected significant energy reliance for mining operations.
Further reports showed Tether invested roughly $100 million of the pledged funding. It also earmarked $50 million for infrastructure that would transfer to UTE ownership. According to internal discussions, the company considered the contractual model inefficient. Energy pricing failed to reflect operational scale demands.
Regional Power Disputes and Mining Strategies
Before withdrawing, Tether planned three data centers requiring around 165 MW of power. It also outlined a 300 MW wind and solar generation park. Even so, economic strain disrupted those infrastructure ambitions.
Moreover, the dispute showed friction between crypto miners and Latin American energy regulators. Uruguay’s response reflected stricter pricing structures tied to national grid sustainability. The case indicated the ongoing regional infrastructure challenges.
Tether continues to target South American mining markets through alternative sites. It announced separate plans in Paraguay and El Salvador, with capacities ranging from 40 to 70 megawatts. The company also has broader ambitions to manage around 1% of global Bitcoin activity.
Tether also confirmed partnerships with South-based production firms for mining development. Officials acknowledged that tariff negotiations had stalled progress. Authorities, meanwhile, documented the closure process and workforce reduction. This scenario demonstrates how utility policy directly impacts mining stability.
Meanwhile, Tether’s Uruguay withdrawal consolidated disputes over tariffs, unpaid electricity bills, and infrastructure costs under a unified breakdown. The sequence revealed a pattern of regulatory pushback against large-scale energy demand projects. Ultimately, the case detailed how operational economics redirected mining strategy across Latin America.