Tether ends $120M Uruguay mining project after dispute

Tether ended its $120M Bitcoin mining project in Uruguay after a dispute with UTE over electricity supply terms and unpaid bills, leading to power cuts and the project's shutdown.

Tether has halted its $120 million Bitcoin mining project in Uruguay following a contractual dispute with the state-owned power utility, UTE. The disagreement centered on electricity supply terms: Tether viewed the agreed power volume as a minimum that could be increased, while UTE considered it a strict cap. Initially, the two mining sites in Florida department operated smoothly and generated revenue. However, as electricity demand rose, the sites faced power shortages. Attempts to resolve the issue failed when Tether representatives did not attend the contract signing for revised terms. After a new government took office in March 2025, UTE adopted a tougher stance. Tether’s local entity, Microfin, stopped paying electricity bills and notified UTE of its intent to terminate the contracts. UTE cut power to the sites on July 25, 2025, prompting Tether to end operations and lay off most staff. The project was originally seen as Tether’s entry into South American mining.