Tether’s Uruguay Mining Operations Hit $5-M Energy Debt Wall — Full Breakdown
Tether's ambitious crypto mining expansion in Uruguay grinds to a halt—crippled by a staggering $5 million energy debt.
Power Play Gone Wrong
The stablecoin giant's mining facilities sit idle after failing to settle mounting electricity bills. Local energy providers cut the cord, leaving mining rigs silent and operations frozen.
Uruguay's cheap renewable power initially attracted Tether's mining ambitions—but even green energy isn't free. The $5 million shortfall exposes the brutal economics of large-scale Bitcoin mining.
Another reminder that in crypto, the only thing more volatile than prices is the relationship between miners and their electricity bills. Maybe they should've minted a few extra USDT to cover the costs—after all, it's just digital money, right?
Tether’s Operational Fallout With Rising Energy Bill
According to local media Busqueda, the payment defaults by Tether began in May 2025. By June, UTE’s president, Andrea Cabrera, signed a Memorandum of Understanding (MoU) with Microfin, the local operator tied to the mining project, in an effort to negotiate a settlement. However, after arrears continued to mount, UTE invoked standard procedures, using security deposits before suspending power supply at the mining sites in Flores and Florida on July 25.
The power cut produces immediate operational consequences, compromising the facilities’ computing nodes and reducing hash rate output, while slowing down general expansion goals. Meanwhile, restarting the sites will also incur additional costs, from renegotiating contracts to restoring technical capacity. And even such processes often require weeks, depending on the guarantees offered and compliance with regulatory protocols. Tether entered Uruguay in 2023 with plans to leverage the country’s renewable energy profile through its “Tether Energy” initiative. Uruguay generates approximately 95% of its electricity from non-fossil sources, making it one of the most attractive jurisdictions globally for “low-carbon” industrial activity. The project was positioned as a step toward diversifying Tether’s business model beyond stablecoin issuance, with ambitions to eventually secure 1% of Bitcoin’s global hash rate. Back in 2023, the company’s CTO, Paolo Ardoino, said about the project:
By harnessing the power of bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining; Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network. Tether is proud to spearhead a movement that combines cutting-edge technology, sustainable practices, and financial innovation
Following the recent revelations by the Uruguayan media, neither Tether nor Microfin has yet to reveal their official position.
USDT Reaches New Market Cap High At $171.5 Billion
In other news, Tether’s stablecoin USDT has attained a new market cap value of $171.5 billion, strengthening its dominant market position. Presently, USDT now accounts for 58.9% of the stablecoins market while remaining the fourth largest cryptocurrency in the world.
