Leading stablecoin issuer Tether has confirmed it’s shutting down its mining operations in Uruguay and is laying off most of its local workforce, after failing to reach an agreement with authorities over energy tariffs.
Officials from Uruguay’s Ministry of Labor, according to local media, said Tether reaffirmed its decision during a meeting with the National Directorate of Labor. Out of 38 employees, 30 will be dismissed as the company winds down its presence in the country.
Tether had planned to invest up to $500 million in Uruguay, including the construction of three data centers and a 300 megawatt renewable energy park. The stablecoin giant first started investing in sustainble bitcoin mining in the country back in 2023.
According to its own account, more than $100 million has already been spent, with an additional $50 million committed to infrastructure that would have been handed over to the national grid operator, UTE.
The company blamed high energy prices and regulatory hurdles for the pullout. Since 2023, it had requested a shift to a more competitive electricity rate structure, proposing to move from 31.5 kV to 150 kV transmission charges, according to local media.
Tether argued that the change would benefit both parties by cutting costs and avoiding redundant infrastructure projects.
