Stablecoin issuer Tether is set to halt its Bitcoin mining operations in Uruguay, citing high energy costs as the primary reason for the decision. This news was reported by local media outlets, which noted that Tether confirmed to Uruguay’s Ministry of Labor and Social Security that it would be conducting layoffs affecting 30 out of its 38 employees in the country.
Tether’s exit from Uruguay follows a challenging period during which the company, which issues the USDT stablecoin, faced a $5 million debt dispute with the state-owned power company UTE. In October, Tether announced a robust profit of $10 billion for the first three quarters of 2025, but the financial strain in Uruguay has prompted this retreat.
Tether’s USDT is known as the most-traded digital currency globally and ranks as the third-largest cryptocurrency, boasting a market capitalization of approximately $184.4 billion. The token is designed to maintain a 1:1 parity with the US dollar, backed by reserves managed by Cantor Fitzgerald, among others. Traders frequently utilize USDT for swift transactions in the crypto market, particularly when buying Bitcoin and other cryptocurrencies.
Despite the setback in Uruguay, Tether’s ambitions remain high. CEO Paolo Ardoino has expressed a desire for the company to become the world’s leading Bitcoin miner. The South American region has garnered attention from Bitcoin miners due to its comparatively low energy costs, a key factor in the highly energy-intensive crypto mining industry.
In recent months, Tether has sought to expand its footprint in Latin America, relocating to Bitcoin-friendly El Salvador in January and acquiring a majority stake in the agricultural firm Adecoagro in March. As Tether pivots away from Uruguay, the company continues to explore opportunities in other regions to solidify its position within the competitive crypto landscape.
