Tether Abandons Uruguay Bitcoin Mining Operation Over Electricity Dispute
Tether's high-stakes Bitcoin mining operation in Uruguay has come to an abrupt end after a long-running dispute over electricity costs. The USDT issuer had invested $120 million in two facilities, but a disagreement with state utility UTE over power supply contracts proved insurmountable.
The issue centered around unclear contract clauses that left Tether's local operator, Microfin, unsure whether it could scale up its operations or was bound by a hard maximum electricity limit. As the mines grew in size and productivity, the discrepancy became a significant hurdle, with stretches of days without sufficient power to run.
The dispute dragged on for months, with Tether's representatives failing to show up to sign revised paperwork even after UTE's board had signed off on a memorandum of understanding. With $5 million in outstanding bills and no agreement in sight, the utility cut power to both sites in July 2025.