Tether exits $120M Uruguay mining after power dispute

Tether exited two Uruguay Bitcoin mining sites after a $120M investment due to disputes with utility UTE over electricity, resulting in power shortages and contract termination.

Tether has abandoned two Bitcoin mining sites in Uruguay following a prolonged dispute with state utility UTE over electricity allocations. Launched in 2023 as Tether’s first major mining venture in South America, the $120 million project aimed to use Uruguay as a testing ground for further expansion. The conflict arose from unclear contract terms: Tether expected to scale up its electricity supply, while UTE considered the agreed figure a hard maximum. As the mining sites expanded, power shortages became frequent, causing operational disruptions. The situation escalated in 2025 when Tether’s local entity, Microfin, stopped paying electricity bills, prompting UTE to disconnect the sites in July. Although the debt was later settled, ongoing power supply issues and contractual misunderstandings led Tether to terminate its contracts and exit the project. This episode underscores the need for clear agreements and reliable power in large-scale Bitcoin mining.