Tether has officially ceased its Bitcoin mining activities in Uruguay, citing unsustainable energy expenses as the primary factor behind the strategic withdrawal. The suspension resulted in the termination of approximately 30 employees and coincides with an ongoing financial dispute involving $4.8 million with UTE, Uruguay’s state-owned power company. Industry analysts note that Uruguay’s electricity prices have reached record levels, creating challenging operational conditions for energy-intensive cryptocurrency mining operations. The Latin American nation, once considered favorable for mining due to its renewable energy infrastructure, has seen power costs surge dramatically in recent months. Tether’s exit follows similar moves by other mining enterprises facing profitability pressures from rising global energy prices. The company’s Uruguayan operations had represented a significant component of its diversified business strategy beyond stablecoin issuance. Market observers suggest this development may signal broader industry consolidation as miners seek jurisdictions with more favorable energy economics. The unresolved debt situation with UTE adds further complexity to Tether’s operational restructuring in the region.
