Tether's Uruguay Bitcoin Mining Venture Crashes Amid Energy Dispute
Tether's ambitious $120 million bitcoin mining venture in Uruguay has collapsed due to a dispute over electricity supply with the state utility UTE. The project, which aimed to take advantage of the country's renewable energy, was intended as a testing ground for Tether's mining push across South America.
The contract between Tether and UTE contained a clause that both parties interpreted differently. Tether believed it represented a minimum level of supply that could later be increased, while UTE treated it as a maximum amount that couldn't be exceeded. The dispute escalated after a left-leaning government took office in March 2025 and appointed new UTE directors.
The utility cut power to the sites on July 25, 2025, and Tether's local entity, Microfin, stopped paying its electricity bills. By November 25, 2025, Tether had told Uruguay's labor authorities it would cease operations and lay off most staff. The company later settled its outstanding debts in December.