- The company has dropped plans for up to $500 million in investment and cut most staff.
- As part of the exit, Tether will lay off 30 of its 38 employees in Uruguay.
Tether has shut down its mining operations in Uruguay after failing to reach an agreement with authorities over electricity tariffs, ending a project that was set to attract up to $500 million in investment. The company said high power costs and regulatory hurdles made the expansion unfeasible.
According to local media outlet ELObservador, officials at Uruguay’s Ministry of Labor said Tether confirmed the shutdown during a meeting with the National Directorate of Labor. The company will dismiss 30 of its 38 employees as it exits the market.
Tether began investing in Uruguay in 2023 as part of a push into sustainable bitcoin mining. It has already spent more than $100 million on facilities and committed another $50 million to infrastructure intended for eventual transfer to the national grid operator, UTE.
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Tariff Dispute Ends Expansion Plan
The project included proposals for three data centers and a 300-megawatt renewable energy park. To support those plans, Tether sought approval to shift from 31.5 kV to 150 kV transmission charges, which it said would reduce costs and avoid redundant infrastructure.
Local media reported that tariff talks failed to progress, leaving the company without a workable rate structure. Tether said electricity prices and regulatory delays ultimately forced its withdrawal from the country.
The pullout marks a setback for Uruguay’s aim to attract energy-intensive technology projects. The partially completed infrastructure now sits idle as authorities review next steps. Tether said the decision was final, ending more than a year of planning for what would have been one of its largest mining initiatives.
