Tether Abandons Uruguay Bitcoin Mining Plans Amid Supply Dispute
Tether's ambitious bitcoin mining plans in Uruguay have come to an abrupt end. The company, which issues nearly two-thirds of all stablecoins in circulation, had touted the country as 'the perfect platform' for its operations due to its abundant renewable energy and robust grid.
In May 2023, Tether announced it would build two mining sites in Uruguay, investing a total of around $120 million. The project was seen as a testing ground for Tether's expansion into South America, with plans to move to larger markets such as Brazil, Paraguay, and Argentina.
However, the project unraveled due to a dispute over electricity supply between Tether and state utility UTE. Despite an initial agreement, Tether believed it had a minimum power supply contract that could be increased, while UTE viewed it as a maximum allocation that couldn't be exceeded.
The disagreement led to insufficient power for the mining plants, leaving them without electricity for days at a time. Microfin, Tether's local entity, stopped paying its bills and terminated contracts in June 2025, after which UTE cut off power to the sites on July 25.