Tether's Uruguayan Mining Dreams Go Up in Flames
Tether's ambitious plan to establish itself as a major player in the Bitcoin mining industry has hit a roadblock. The company spent around $120 million on two Bitcoin mining sites in Uruguay, but ultimately abandoned the project due to a dispute with the state utility over electricity supply.
The project was touted as a 'perfect platform' for Tether's mining operations, thanks to Uruguay's abundant renewable energy. However, the company's optimism soon turned sour when it discovered that its contract with the state utility, UTE, had a fundamental disagreement about electricity supply.
Tether believed that a clause in its contract represented a minimum level of supply that could later be increased, while UTE treated the contracted amount as a maximum that could not be exceeded. The dispute began to escalate in November 2024 and worsened after a left-leaning government took office in March 2025.
The company's local entity, Microfin, stopped paying its electricity bills in May 2025 and told UTE it would terminate its contracts. UTE cut power to the sites on July 25, and Tether informed Uruguay's labor authorities that it would cease operations and lay off most staff by November 25.