Tether Abandons $120M Uruguay Bitcoin Mining Project Amid Power Dispute

Tether's ambitious Bitcoin mining project in Uruguay has come to an abrupt end due to a power dispute between the company and state utility UTE. The $120 million project, which was launched in 2023, aimed to use Uruguay as a testing ground for wider South American expansion.

The issue began when Tether's contracted electricity allocation was not increased as expected, leaving the mining facilities without enough power to operate reliably. Microfin, the company operating on behalf of Tether, stopped paying electricity bills and informed UTE about plans to terminate existing contracts in May 2025.

Despite attempts to reach a revised agreement, negotiations failed, and UTE disconnected electricity from the mining facilities on July 25. The project ultimately ended with Microfin settling outstanding debts with UTE in December but failing to resume operations.