Tether's Uruguay Bitcoin Mining Bet Turns Sour Over Electricity Dispute
Tether's foray into bitcoin mining in Uruguay has ended in failure after a dispute over electricity supply led to a costly impasse. The company behind the largest stablecoin spent around $120 million on two sites in the rural department of Florida, but ultimately abandoned them.
The project was touted as a 'first step' in Tether's expansion into South America, with Uruguay chosen for its abundant renewable energy. However, a disagreement over electricity supply with state utility UTE soured the deal.
Tether believed it had secured a minimum level of power supply that could be increased later, but UTE treated the contracted amount as a maximum that couldn't be exceeded. The dispute began in November 2024 and escalated after a left-leaning government took office in March 2025.
By May 2025, Tether's local entity, Microfin, had stopped paying electricity bills and threatened to terminate its contracts with UTE. Power was cut to the sites on July 25, and by November, Tether announced it would cease operations and lay off most staff.