Tether Ditches Uruguay Mining Sites After Power Dispute

Tether's Bitcoin mining operation in Uruguay has come to an end after a prolonged dispute over power numbers. The company had invested $120 million in two facilities, but its local operator Microfin failed to reach an agreement with state utility UTE on electricity supply.

The issue arose from unclear contract clauses, with Tether interpreting the supply contract as a minimum figure that could be scaled up, while UTE claimed it was a hard maximum. The discrepancy became significant when the facilities increased in size and productivity, leading to power shortages.

Microfin stopped paying its electricity bills by May 2025, and Tether's representatives failed to show up for a signing ceremony in June. With about $5 million in outstanding bills, UTE cut off power to both sites on July 25. The debt was eventually cleared in December, but the partnership had already collapsed.

Tether had touted Uruguay as an ideal location due to its renewable power and reliable grid, but the project's failure has not slowed the company's mining ambitions across South America. In fact, it struck a deal with Adecoagro to mine Bitcoin on renewable power in Brazil just one month after the partnership with UTE ended.