In 2023, Tether — the issuer of the most capitalized
stablecoin USDT — announced the start of a large-scale mining project in Uruguay. The country attracted attention due to its low carbon footprint: over 95% of its electricity is generated from renewable sources. In partnership with the local company Microfin, Tether intended to create powerful mining farms and capture up to 1% of the global Bitcoin hash rate. Over two years, more than $100 million was invested in the Tether Energy project.
Energy Crisis: Debts and Shutdown
Despite being one of the largest consumers of electricity in the country,
Tether faced serious financial difficulties. The national energy company UTE, tired of waiting for debt repayment, decided to shut down mining operations. According to the Uruguayan publication
Busqueda, the local management of Tether has already decided to completely cease operations in the region by the end of 2025.
The key reason was the failure of negotiations with UTE: the company could not agree on preferential electricity tariffs and restructuring of the accumulated debt. This became a decisive factor in the decision to leave.
High Price of 'Green' Electricity
Although Uruguay is considered a leader in the share of renewable energy in its energy balance, its electricity tariffs turned out to be unacceptable for energy-intensive operations like mining. As noted by Busqueda, in neighboring Bolivia and Paraguay, the cost of kilowatt-hours is significantly lower, making these countries more attractive for such projects. Other foreign miners have already left Uruguay for the same reasons.
Official Position: 'Not Everything is So Clear-cut'
In response to reports of a complete exit from the country, Tether representatives commented to Cointelegraph, stating that 'assumptions about the cessation of activities in Uruguay are not entirely accurate.' Nevertheless, the large investments and current problems with UTE indicate that the prospects for the project in the region are extremely bleak.
New Vector: Brazil Instead of Uruguay
While the Uruguayan project is hitting a dead end, Tether is actively developing alternative directions. The company previously announced an agreement with the Brazilian energy corporation Adecoagro. As part of the partnership, new mining farms are planned to be launched, focused on Bitcoin mining using local energy resources. This move could become a strategic turning point in Tether's global expansion in the crypto-energy sector.
