Tether Quits $120M Uruguay Mining Bet Amid Power Clash

Tether's ambitious foray into Bitcoin mining in Uruguay has come to an abrupt end after a prolonged power dispute with state utility UTE. The USDT issuer had invested an estimated $120 million in two facilities, but the contract clause uncertainty regarding electricity supply ultimately proved insurmountable.

According to sources, Tether saw a specific figure in its contract as a minimum it could scale up from, whereas UTE claimed this number was a hard maximum. This discrepancy became increasingly significant as the mining sites expanded and productivity grew, leading to periods where power shortages hindered operations.

The situation escalated when Uruguay's new left-leaning administration took office in March 2025, installing fresh directors at UTE who were less inclined to renegotiate the deal. By May, Microfin, Tether's local operator, had stopped paying electricity bills, and in June, it notified UTE of its intention to terminate the contracts.

A last-ditch attempt to salvage the partnership failed when Tether's representatives failed to sign a revised agreement, despite UTE's board signing off on a memorandum of understanding. With outstanding debts and no signed deal, UTE cut power to both sites in July 2025.