TLDR
- Tether denies reports it left Uruguay, confirming its commitment to a $500M Bitcoin mining project.
- Tether’s mining operations face a $4.8M debt dispute with Uruguay’s state-owned electricity company
- Uruguay’s high electricity costs remain a challenge for crypto mining ventures in the country.
- Tether continues to evaluate its strategy in Uruguay while supporting local efforts to resolve issues.
Tether has refuted claims that it abandoned its $500 million Bitcoin mining project in Uruguay following a debt dispute with the country’s electricity provider. Recent reports suggested that Tether halted its operations after the National Administration of Power Plants and Electric Transmissions (UTE) disconnected power due to an unpaid electricity bill. The bill, amounting to $2 million for May 2025, was reportedly part of a larger $4.8 million debt owed by Tether for various local projects.
In response to these claims, Tether clarified in a statement that it continues to evaluate its future plans in Uruguay. The company emphasized that the reports about its exit from the country were inaccurate and that discussions were ongoing to resolve the debt issues with the local authorities. Tether’s CEO, Paolo Ardoino, confirmed the company’s commitment to its operations, indicating that the situation was a temporary setback rather than a full retreat.
The Debt Dispute with UTE
The alleged debt dispute involves two main amounts: $2 million for electricity costs and around $2.8 million for other local projects. According to local reports, the unpaid bills led to UTE disconnecting power at Tether’s mining facilities, which were crucial for the company’s mining operations.
Despite this, Tether’s official stance is that the company is working closely with the local mining operator to resolve the situation with the government.
The $500 million investment in Uruguay’s crypto mining infrastructure was part of Tether’s broader strategy to expand its Bitcoin mining operations. While the electricity issue remains unresolved, the company remains hopeful about continuing its operations in Uruguay, recognizing the need for a constructive path forward.
High Electricity Costs in Uruguay
One of the challenges that have surfaced in the wake of Tether’s dispute with UTE is Uruguay’s relatively high electricity costs. The country’s electricity rates range from $60 to $180 per megawatt-hour (MWh), which is significantly higher than in neighboring Paraguay, where electricity is produced for about $22 MWh from the Itaipu hydropower plant.
The high costs of electricity in Uruguay have made it less attractive for energy-intensive industries like crypto mining. In fact, other companies in the sector, such as Vici Mining, have already relocated their operations to Paraguay to take advantage of lower electricity rates.
Tether’s situation mirrors these challenges, as the company had reportedly sought reduced electricity rates from UTE to make its operations more cost-effective.
Tether’s Strategy in the Region
Despite the ongoing disputes, Tether has maintained a strategic focus on expanding its presence in the cryptocurrency and blockchain space. The company continues to run Bitcoin mining operations in Paraguay, which offers more favorable electricity prices, and has expressed interest in diversifying its activities further. Tether has also made significant investments in the broader DeFi ecosystem, aiming to capitalize on Ethereum’s growth and other blockchain innovations.
The company’s strategy involves more than just holding crypto assets. Tether is investing in scalable, energy-efficient mining solutions and exploring opportunities in tokenized real-world assets (RWAs). The firm’s commitment to sustainable operations in Latin America is reflected in its ongoing efforts to resolve the situation in Uruguay and continue its growth in the region.
Tether’s leadership remains confident that the issues in Uruguay will be resolved and that the company will remain a key player in the global cryptocurrency mining sector. The company is also dedicated to ensuring that it continues to support local energy infrastructure while expanding its footprint in Latin America.
