Tether's Uruguay Bitcoin Mining Project Grounded by Power Dispute

Tether's ambitious Bitcoin mining project in Uruguay has hit a snag due to a dispute over power supply. The $120 million investment, which aimed to establish Tether as a major player in South American Bitcoin mining, has been suspended after the state-owned power company UTE cut off electricity to two mining sites on July 25, 2025.

The disagreement between Tether and UTE centered around the contracted power supply amount. While Telter viewed it as a minimum guaranteed supply, UTE considered it a maximum supply limit. As a result, power bills went unpaid, leading to UTE's decision to disconnect the mining sites.

Tether subsequently ended its local operations in Uruguay and laid off most employees. However, Microfin, a local entity, later settled the outstanding debts with UTE.