Tether is committed to negotiating an electric debt of $4.8 million with Uruguay after the supply was interrupted in May 2025 due to a bill of approximately $2 million, with additional liabilities related to other initiatives amounting to about $2.8 million. The company, which denies rumors of an exit from the country, confirms that negotiations are underway with local authorities to define a sustainable path. In this context, the priority is to avoid prolonged interruptions and reestablish a clear framework of relations.
According to data collected by industry analysts and available official communications, payment delays were documented between April and May 2025 and have generated technical disputes over the calculation of consumption. Analysts note that the case is representative of structural issues in the management of supply contracts for high-energy-intensity projects. These observations are based on internal reports and public statements from the parties involved.
The incident, recently reported by local media such as Búsqueda and Telemundo, highlights the difficulties in the mining sector, with investment plans estimated at $500 million, and reopens the debate on Uruguay’s energy competitiveness. It must be said that the issue of costs remains central to attracting and maintaining capital-intensive projects.
What Happened: Breakdowns and Key Figures
Local reports indicated that the state utility UTE would cut off supply to mining facilities following a May 2025 bill of around $2 million. According to the same sources, the total debt would amount to $4.8 million, of which $2.8 million relates to other initiatives in the area. That said, the situation remains fluid: ongoing negotiations include defining sustainable rates and conditions to restore continuity. Indeed, the structure of contracts and the predictability of supplies are at the heart of the negotiation.
The official response from Tether
Tether has responded to Cointelegraph denying the rumors of an exit from Uruguay, instead emphasizing that ongoing discussions with the government aim at a resolution of the debt dispute and ensuring the continuation of activities in the region. The stated focus is to preserve stability and continuity.
“We are in ongoing discussions with the government to resolve tensions and proceed with a constructive long-term solution,” stated Tether.
The company continues to demonstrate its commitment to the territory, placing the presence of the projects in relation to a stable regulatory and tariff framework. Yet, without a clear agreement, operations risk being affected by stop-and-go.
Energy: the key factor that can decide everything
In the mining sector, energy is the most significant component of costs. In Uruguay, electricity prices range between $60 and $180 per MWh, a higher range compared to some neighboring countries. In Paraguay, for example, thanks to the Itaipú plant, the cost can drop to about $22 per MWh, making the market more competitive for high-energy-intensity operations. In this context, even small price differences can direct entire industrial plans from one jurisdiction to another.
With electricity potentially accounting for up to 80% of operational costs in mining facilities, slight tariff variations immediately impact margins and returns. This is why companies request dedicated tariffs or long-term contracts with stable conditions, allowing them to plan with multi-year horizons.
Essential Timeline
- 2018 — the company Vici Mining transfers assets to Paraguay to take advantage of lower electricity costs.
- 2023 — Tether announces its intention to start mining activities in Uruguay, with investment prospects of approximately $500 million.
- May 2025 — local media report supply disruptions by UTE and a disputed bill around $2 million.
- Ongoing — negotiations between Tether’s local subsidiary and Uruguayan authorities to define sustainable rates and conditions.
Impact on Businesses and Territory
Potential power supply interruptions by UTE directly affect the operation of projects: they slow down activities, increase unit costs, and can compromise the continuity of investments. In energy-intensive sectors, the stability and predictability of prices are as crucial as the applied tariff. That said, a clear contractual framework can safeguard plans and limit operational risk.
- Investment risk: uncertainty that could slow down or alter plans for investments up to $500 million.
- Energy arbitrage: potential shift of hashpower towards markets with more competitive electricity costs.
- Local effect: potential reduction in infrastructure investments and support for skilled employment.
UTE Cuts and Operational Implications
An interruption in electricity supply requires restoration through formal agreements, new contractual guarantees, and often a revision of tariff schemes. In the mining sector, it is customary to negotiate discounts for constant loads or solutions that ensure minimal interruption, provided the rules are clear and the timing is swift. Indeed, the reliability of the service is as crucial a factor as the subscribed price level.
LATAM Scenario: stablecoin in expansion
Parallel to the issues related to mining, the region is experiencing a growing adoption of stablecoins. In Bolivia, some retail operators have started using USDT for payments, while in Colombia, players like MoneyGram are experimenting with digital dollar solutions for remittances and savings, in response to pressures on the value of the local peso. Yet, financial adoption does not offset the high energy costs in mining projects.
Although the adoption of stablecoins does not eliminate the energy differential, it strengthens the link between the crypto sector and the real economy, creating synergies with advanced computing infrastructures. In this sense, the dynamics of digital payments and computing coexist but follow distinct economic logics.
Quick Questions
Does the case concern only Tether Uruguay?
No. It is part of a broader picture. The mining sector in Uruguay is vulnerable to fluctuations in electricity costs, and investment decisions remain closely tied to the energy convenience offered by the country. In other words, without competitive rates, the risk of relocation increases.
What to watch now
The outcome of negotiations on tariffs and outstanding debts will determine the trajectory of crypto projects in Uruguay. A swift and transparent solution could safeguard the planned investments of $500 million; otherwise, it will increase the pressure towards markets characterized by lower energy costs. At stake is not only operational continuity but also long-term competitiveness.
