Tether has suspended its planned $500 million Bitcoin mining buildout in Uruguay, blaming steep energy costs and the absence of a supportive tariff framework.
Key Takeaways:
- Tether announced that it will stop its large-scale mining expansion in Uruguay after unsuccessful negotiations with the state utility over power tariffs.
- Local reports indicate unpaid power bills and temporary disconnections earlier this year, with figures near $4.8–$5 million cited by regional outlets; Tether has pushed back on some exit claims while confirming it is reassessing operations.
- Market reaction was muted as of this writing, where Bitcoin traded around $91,400 and Ethereum near $3,000.
Tether, the issuer of the world’s largest stablecoin by market cap, announced that it has halted plans to complete a $500 million mining and data center investment in Uruguay. The company said the move was driven by high energy costs and the lack of an agreed tariff framework with Uruguay’s state utility. The project had previously included plans for multiple data processing centers and a significant mining footprint in departments such as Florida and Tacuarembó.
Earlier in 2025, local media reported tensions between Tether and Uruguay’s state electric company over unpaid electricity bills, leading in some cases to temporary disconnections at mining sites. These reports cited outstanding bills in the low single-digit millions of dollars. Tether, however, has disputed claims that it fully abandoned its operations, stating that it is reassessing its strategy in response to the evolving cost and regulatory landscape.
Tether and Analysts Weigh in on Energy and Policy Risks
In its public statement, Tether framed the decision as commercial and energy-driven, pointing specifically to “high energy costs and lack of tariff frameworks” as the reason for halting the Uruguay expansion. Regional analysts note that the move underscores how vulnerable energy-intensive crypto mining operations can be to local tariff policies and utility negotiations. Experts also say the episode reflects a broader industry trend, where miners increasingly prioritize predictable, long-term energy contracts before committing large-scale capital investments.
Market Response
As of this writing (8:30AM UTC), the broader crypto market saw minimal reaction amid Tether’s announcement, suggesting that the market’s current price movement was not triggered by the story. TradingView’s real-time market data shows that Bitcoin (BTC) is currently trading at approximately $91,383.82, showing a 4.4% gain over the past 24 hours. CoinGecko data logged intraday highs near $91,849.67 and intraday lows around $86,448.03, suggesting that Bitcoin’s upward momentum is more attributed to macro developments after plunging to around $80,000 last week.
Meanwhile, Ethereum (ETH) is trading around $3,024.95, showing a 3.7% gain over the past 24 hours. The same aggregator source shows that the token reached intraday highs around $3,066.28 and touched intraday lows near $2,892.14.
What’s Next?
For now, Tether’s pause appears operational rather than systemic, with no immediate threat to the broader digital asset markets. Key developments to monitor include any follow-up from Uruguay’s utility on outstanding bills, Tether’s future investment plans in Latin America, and market reactions if other mining operators adjust their strategies in response to energy and cost pressures. Investors and traders should closely watch official corporate communications and local regulatory updates to gauge the next steps in the evolving situation.
Summary
Tether has paused a planned $500 million Bitcoin mining and data center project in Uruguay due to high energy costs and failed tariff negotiations with the state utility, and the company says it is reassessing its operations.
