Stablecoin issuer Tether has refuted recent reports that it is abandoning its $500 million cryptocurrency project in Uruguay. The denial follows widespread reports in local media that the company was exiting the country due to a $4.8 million debt dispute with Uruguay's state-owned electricity entity, the National Administration of Power Plants and Electric Transmissions (UTE).
Local news source Telemundo reported that Tether had ceased its crypto mining operations and future plans after UTE disconnected power to its facilities for failing to pay a $2 million electricity bill from May. The report also stated that Tether owed an additional $2.8 million for other local projects, bringing its total liabilities to approximately $4.8 million, excluding fines and surcharges. Telemundo cited fellow local news outlet Busqueda as the original source of the news.
In response to these reports, Tether stated that speculations of an exit from the region do not accurately reflect the situation. The company acknowledged the debt issue and stated that the local company managing the crypto mining facilities is in ongoing discussions with the government to resolve the outstanding friction. Tether emphasized its support for these efforts and its commitment to sustainable opportunities in the region.
Tether's plans to begin crypto mining in Uruguay were initially announced in November 2023, with local media projecting potential investments of up to $500 million. The project, operating under the "Tether Energy" initiative, aimed to leverage Uruguay's high percentage of electricity generated from renewable sources (approximately 95%) for low-carbon industrial activity. The company also had ambitions to secure 1% of Bitcoin's global hash rate.
However, the project has faced challenges, including rising energy bills. UTE suspended service to two of Tether's mining facilities in July 2025 due to unpaid bills of roughly $5 million. While Tether has not directly commented on the high electricity costs, reports have linked the alleged shutdown to this factor. Electricity prices in Uruguay range from $60 to $180 per megawatt hour (MWh), which is considerably higher than in neighboring Paraguay, where electricity costs around $22 MWh due to the Itaipu hydropower plant. This disparity in cost has led other crypto mining companies, such as Vici Mining, to relocate from Uruguay to Paraguay.
Despite the current challenges, Tether maintains that it is evaluating the best way forward in Uruguay and the broader region and remains committed to its long-term goals. The company's initial vision for its Uruguay operations included investments of over $100 million in two mining sites, with planned investments of over $500 million, encompassing a wind and solar generation facility.
