Tether Abandons Uruguay Bitcoin Mining Project Amid Electricity Dispute

Tether's Bitcoin mining project in Uruguay has come to an end after a contractual dispute with state-owned power company UTE. The estimated $120 million operation was seen as a possible entry point for Tether's expansion in South America.

The conflict centered around the amount of electricity available for two mining sites in the department of Florida, which Tether believed represented a minimum and UTE considered a maximum limit.

According to former contractors, the facilities initially operated normally and generated revenue but began experiencing power outages as demand increased. Despite negotiations, Tether representatives failed to sign a revised contract.

The situation worsened after the government change in March 2025, which led to new UTE directors adopting a firmer stance. Microfin, linked to Tether, stopped paying electricity bills and eventually informed UTE of its intention to end contracts.