Tether's Uruguay Mining Project Falters Amid Contractual Dispute

Tether's ambitious plan to establish Uruguay as a hub for Bitcoin mining has hit a major roadblock. The company's two mines in the department of Florida, estimated to have cost around $120 million, were shut down by state-owned electricity provider UTE in July 2025 due to unpaid bills.

The dispute centered on a disagreement over the contracted power figure, with Tether believing it could eventually expand its electricity allocation and UTE viewing it as the maximum amount available. This issue became critical as the mines scaled up their operations, sometimes leaving them without enough electricity for days.

Tether attempted to renegotiate the arrangement, but ultimately failed to secure a revised contract. The company has since shifted its focus to other countries in South America, including Brazil, where it has partnered with agricultural and renewable-energy producer Adecoagro to explore using surplus renewable electricity for Bitcoin mining.

The episode highlights the importance of contractual certainty over both electricity prices and power consumption for large-scale Bitcoin miners. As the industry continues to evolve, operators will need to carefully evaluate potential jurisdictions based on more than just headline renewable-energy capacity.