Tether Abandons $120M Bitcoin Mining Bet in Uruguay Over Power Dispute

Tether, a stablecoin issuer, abandoned its $120 million Bitcoin mining investment in Uruguay after a power dispute with the state-owned utility company escalated into unpaid bills and electricity cutoffs. The project's collapse highlights the vulnerability of Bitcoin mining to power costs and contract terms, even in countries with abundant renewable energy.

Tether invested around $60 million in each of two sites in Uruguay's rural Florida department, according to a former contractor's assessment. Initially, operations generated revenue, but the relationship deteriorated over electricity supply issues.

The disagreement began by November 2024 and intensified after President Yamandú Orsi's government took office and installed new leadership at UTE. Microfin, Tether's Uruguayan entity, stopped paying its electricity bills in May 2025 and told UTE it intended to terminate the contracts.

UTE cut electricity to the mining sites on July 25, 2025, after Microfin's arrears exceeded $5 million. Tether notified Uruguay's labor authorities that it would cease operations on November 25, eliminating 30 of its local jobs.