Tether's Uruguay Mining Project Shut Down Amid Energy Dispute

Tether's bitcoin mining project in Uruguay shut down due to an energy dispute between the stablecoin issuer and the state-owned energy company UTE. The issue began when Tether, which had launched its operations in 2023, sought to increase electricity supply as its consumption grew.

However, UTE interpreted the contract differently, considering the agreed-upon volume as a maximum limit rather than a minimum requirement for Tether's operation. This led to frequent power outages lasting several days, making it difficult for the mining facilities to operate efficiently.

The dispute escalated after a change in leadership at UTE, with Yamandú Orsi becoming the president of Uruguay in March 2025. Although there was no evidence that the project failed specifically due to political changes, Tether's local entity, Microfin, stopped paying electricity bills in June 2025, leading to the disconnection of both sites from the grid on July 25.

Tether had initially intended to invest up to $500 million in Uruguay, including three data centers with a total capacity of 165 MW and renewable generation facilities of 300 MW. The company's CEO, Paolo Ardoino, had predicted that Tether would lead in bitcoin mining, with estimated investments exceeding $2 billion and 15 sites across South America.