Tether, issuer of USDT, the world’s largest stablecoin, has halted Bitcoin mining operations in Uruguay because of rising energy costs.
“We can confirm that we have paused operations in Uruguay,” a Tether spokesperson told Cointelegraph on Friday, adding that the company remains committed to its long-term projects in Latin America.
The confirmation came weeks after Tether denied reports that it planned to exit the country following a $4.8 million debt dispute with a state-owned electricity provider in September.
According to a Tuesday report by local news agency El Observador, Tether formally notified Uruguay’s Ministry of Labor of the suspension of its mining activities and the dismissal of 30 employees.
Tether’s Uruguay story: What went wrong?
Tether first announced the launch of “sustainable Bitcoin mining operations” in Uruguay in May 2023, partnering with an unidentified local licensed company.
“By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining,” Paolo Ardoino, now Tether CEO and then chief technology officer, said at the time, highlighting the company’s commitment to eco-friendly crypto operations.
Although Tether has not publicly identified its local partners, industry reports have linked the company’s mining operations in Uruguay to the National Administration of Power Plants and Electric Transmissions (UTE) and the local commercial operator Microfin.
In September, local news source Telemundo reported that Tether was abandoning its $500 million investment in Uruguayan mining operations after allegedly failing to pay a $2 million electricity bill to UTE, along with another $2.8 million owed for other local projects.
Tether then denied plans to exit the country but confirmed the debt, stating it was actively engaged with the government to “resolve the outstanding friction.”
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Of the projected $500 million investment, the company has reportedly spent at least $100 million on mining operations and another $50 million on infrastructure, according to El Observador.
Tether did not confirm the figures when approached by Cointelegraph, saying: “Tether is committed to building long-term initiatives in Latin America, especially projects that harness renewable energy. We continue to evaluate the best way forward in Uruguay and the region more broadly.”
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