Tether Abandons Uruguay Bitcoin Mining Operation Amid Energy Supply Dispute
Uruguay was chosen as the perfect location for Tether's Bitcoin mining operation due to its abundant renewable energy and robust grid. In May 2023, Tether announced a plan to launch two mining sites in Uruguay, part of a spending spree that would bring economic development, new energy infrastructure, and jobs to the country.
The project aimed to use Uruguay as a testing ground before moving to bigger markets such as Brazil, Paraguay, and Argentina. However, a dispute over energy supply with state utility UTE led to the abandonment of the mining sites. Tether had invested around $120 million in the two sites, which was intended to be just the first step in its Bitcoin mining plans across South America.
The disagreement concerned how much electricity Tether's local legal entity Microfin was entitled to. The dispute began by November 2024 and was compounded by a shift in Uruguay's political landscape. A left-leaning government took office in March 2025 and appointed new directors at UTE, who took a harder line on allowing Tether to renegotiate the energy supply contract.
Tether representatives did not attend the signing of a revised contract, and UTE cut power to the mining sites on July 25. By November 25, Tether told Uruguay's labour authorities that it would cease operations and lay off most staff.