Tether has officially confirmed the gradual cessation of its Bitcoin mining activities in Uruguay, citing unsustainable energy expenses as the primary catalyst. The company had been engaged in prolonged tariff negotiations with UTE, the national power utility, throughout 2023. These discussions ultimately failed to yield a mutually agreeable power pricing structure, prompting Tether’s strategic decision to phase out operations. The wind-down process is currently in its initial stages, reflecting a measured approach to exiting the market. This development highlights the critical challenges cryptocurrency mining operations face in regions with volatile energy economics. Tether’s exit underscores the industry’s sensitivity to operational costs and the importance of stable energy partnerships for sustainable mining ventures. The situation demonstrates how macroeconomic factors continue to shape the geographic distribution of cryptocurrency infrastructure globally.
