Tether's Uruguay Bitcoin Mining Plan Grounded by Contract Dispute

Tether's ambitious Bitcoin mining project in Uruguay has hit a snag due to a contract dispute with state utility UTE. The two facilities, which were touted as ideal for Bitcoin mining because of Uruguay's renewable power and reliable grid, have been left short on electricity.

The issue stems from a disagreement over the power supply between Tether's local partner Microfin and UTE. While Microfin treated its power supply as a minimum that could be scaled up, UTE saw it as a hard cap that couldn't be exceeded. After Uruguay's new government took office in March 2025 and installed new UTE leadership, sources told Reuters the utility took a tougher stance.

The dispute led to Microfin stopping payments on its bills, attempting to terminate contracts in June 2025, and ultimately UTE cutting power to the facilities on July 25. However, it was later reported that the debts were settled in December.