It was viewed as part of the company’s plan to become the largest BTC miner. In total, Tether has invested more than $2 billion in energy and mining infrastructure across 15 sites in Uruguay, Paraguay, and El Salvador. The project in Uruguay was seen as the first step into the South American market. Initially, Tether’s facilities performed well and generated revenue. However, as demand for electricity grew, the sites began experiencing power shortages lasting several days in a row.
Tether was unable to reach an agreement on energy supplies with Uruguay’s state-owned power company, UTE. The conflict escalated after the country’s change in government, with the rise of center-left forces led by Yamandú Orsi. After the new government came to power and UTE’s leadership changed, Tether stopped paying its electricity bills. As a result, UTE cut off power to the facilities, and Tether announced it was ceasing operations and laying off staff.