Tether has halted a bitcoin mining project in Uruguay after a dispute with state-owned utility UTE over the scale of its power supply contract. The stablecoin issuer entered the country in May 2023 with plans to work with a locally licensed company on sustainable bitcoin mining and to invest in energy production. The project included two mining sites in Florida department, with estimated investment of $60 million for each site, or about $120 million in total. According to Bitcoin.com News, Tether’s local entity Microfin stopped paying electricity bills in May 2025 and informed the utility in June that it intended to terminate the contract. UTE cut power to the mining facilities on July 25. At that point, Microfin owed nearly $5 million, while monthly electricity costs were around $2 million. Tether later notified Uruguay’s labor authorities on Nov. 25, 2025 that it would cease operations. The closure led to the elimination of 30 out of 38 local jobs. UTE said Microfin settled the outstanding balance in December. The report also noted that 98% of Uruguay’s electricity generation in 2025 came from renewable sources.
Tether has shut down its bitcoin mining operation in Uruguay following a dispute with state-owned power company UTE over the size of its electricity supply contract, according to Bitcoin.com News.
$120 million project in Florida department
The stablecoin issuer entered Uruguay in May 2023 and planned to work with a locally licensed company on sustainable bitcoin mining while also investing in energy production.
The project operated two mining sites in Florida department. Each site was estimated to involve $60 million in investment, bringing the total to about $120 million.
Power cut followed payment stoppage
UTE and Tether disagreed over the contracted electricity allocation. Tether’s Uruguayan entity, Microfin, stopped paying power bills in May 2025 and notified the utility in June that it intended to terminate the contract.
On July 25, UTE disconnected electricity to the mining facilities. At the time, Microfin owed nearly $5 million, and the monthly power bill was about $2 million.
Operations ended and jobs were cut
Tether notified Uruguay’s labor authorities on Nov. 25, 2025 that it was ceasing operations. Of 38 local jobs tied to the project, 30 were eliminated.
UTE said Microfin settled the outstanding debt in December. The report added that 98% of Uruguay’s power generation in 2025 came from renewable sources.
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