In a dramatic turn for Latin America's burgeoning crypto sector, Tether’s ambitious push into Bitcoin mining in Uruguay has ground to a halt following an energy dispute that left its multimillion-dollar mining facilities in the dark. The development, confirmed on July 25, 2025, marks a significant setback for both Tether’s regional expansion and Uruguay’s aspirations to become a hub for digital infrastructure built on renewable energy.
According to reporting by Busqueda and Invezz, the crisis began in May 2025, when Tether—through its local partner Microfin—started falling behind on electricity payments to Uruguay’s state-owned utility, UTE. By June, with debts mounting, UTE’s president Andrea Cabrera signed a Memorandum of Understanding with Microfin in an effort to negotiate a settlement. But the arrears only grew, eventually reaching nearly $5 million. With no resolution in sight, UTE invoked standard procedures, first drawing on security deposits and then, on July 25, cutting off power to Tether’s mining sites in the Flores and Florida regions.
The immediate impact was severe: the shutdown crippled the computing nodes at both facilities, slashing hash rate output and stalling Tether’s plans to expand its Bitcoin mining footprint. The company, which had entered Uruguay in 2023 with great fanfare, had set its sights on securing 1% of the world’s Bitcoin hash rate by leveraging the country’s renewable energy resources. Uruguay, after all, generates about 95% of its electricity from non-fossil sources, making it a darling for companies seeking to burnish their green credentials while engaging in energy-intensive crypto mining.
Back in 2023, Tether’s then-CTO Paolo Ardoino had touted the project as a model of sustainability and innovation. "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," Ardoino said at the time, as quoted by Bitcoinist.
But the reality, as it unfolded, proved more complicated. According to Invezz, Tether had planned to invest $500 million in Uruguay, with blueprints for three data centers and a 300 MW renewable energy park. The company had already sunk more than $100 million into the venture before the power struggle began. Monthly electricity invoices reportedly hovered around $2 million, and by July, debts had ballooned to more than $4.8 million. Unable to secure the competitive electricity tariffs it had hoped for, Tether pulled the plug—at least for now—on its grand plans.
The fallout extends beyond Tether’s corporate ambitions. The company’s withdrawal jeopardizes Uruguay’s hopes of positioning itself as a regional leader in digital infrastructure and renewable energy. As experts cited by Invezz point out, the lack of competitive electricity tariffs is a major stumbling block for attracting large-scale blockchain and data-processing investments. Neighboring countries, offering more favorable conditions for crypto miners, threaten to lure away the very projects Uruguay has sought to cultivate.
Restarting Tether’s mining operations in Uruguay won’t be as simple as flipping a switch. The process involves renegotiating contracts, restoring technical capacity, and complying with regulatory protocols—a sequence that could take weeks, if not longer, and comes with additional costs. Neither Tether nor Microfin has publicly commented on the current impasse, leaving the future of the project uncertain.
Yet, while Tether’s mining venture in Uruguay faces headwinds, the company’s flagship stablecoin, USDT, is reaching new heights. As of September 20, 2025, USDT’s market capitalization hit an all-time high of $171.5 billion, cementing its dominance with a 58.9% share of the stablecoin market and ranking as the fourth largest cryptocurrency globally, according to Bitcoinist. This comes amid a broader surge in stablecoin adoption throughout Latin America, driven by rampant inflation and currency instability in countries like Brazil, Argentina, Bolivia, and Venezuela.
In Brazil, stablecoins now account for a staggering 90% of crypto activity, while in Argentina, dollar-pegged assets such as USDT and USDC are projected to represent more than 70% of crypto purchases by the end of 2024, Invezz reports. These digital dollars are increasingly used for everyday transactions—everything from groceries to salaries—offering a lifeline for consumers battered by the volatility of local currencies.
Latin America’s crypto scene is not just about mining and market caps, though. It’s also about innovation in payments and banking. This week, Nubank, the region’s largest digital bank, announced plans to test stablecoin payments using credit cards. The initiative was revealed by Roberto Campos Neto, Nubank’s vice president and former governor of Brazil’s central bank, at the Meridian 2025 event. Campos Neto emphasized blockchain’s role in bridging crypto assets and traditional finance, stating that Nubank’s pilot is part of a broader goal to integrate digital assets into the mainstream financial system.
"Blockchain technology is crucial for linking crypto assets and traditional banking," Campos Neto said, according to Invezz. Nubank’s move is seen as a natural evolution in a region where digital assets have already gained significant traction. The bank’s tests could pave the way for broader adoption of stablecoin-based payments, especially as economic pressures continue to drive demand for dollar-denominated assets.
Meanwhile, in Brazil, Bitget Wallet—a non-custodial cryptocurrency wallet—has integrated the country’s popular instant payment system, PIX. This allows users to pay with self-custodied cryptocurrencies like USDT and USDC by simply scanning PIX QR codes. According to a company press release cited by Invezz, the integration enables payments across major blockchains, with merchants receiving Brazilian reais directly. PIX, introduced by Brazil’s central bank in 2020, has quickly become the nation’s most widely used retail payment method, completing 64 billion transactions worth $4.6 trillion in 2024 alone.
Bitget Wallet’s PIX integration means that users can now pay for anything from restaurant meals to peer-to-peer transfers with crypto, bypassing banks and intermediaries. The system’s popularity highlights the region’s appetite for financial innovation and the growing role of digital assets in everyday life.
For Uruguay, the Tether episode is a cautionary tale about the challenges of marrying crypto ambitions with the realities of energy economics. For the rest of Latin America, though, the steady march toward digital payments and stablecoin adoption continues, reshaping the financial landscape one transaction at a time.
