Stablecoin issuer Tether entered Uruguay in May 2023 with plans to work with locally licensed companies on sustainable Bitcoin mining and to invest in energy production. The project set up two mining sites in Florida department, with each site estimated at $60 million in investment, for a combined total of about $120 million. A dispute later emerged between Uruguay’s state power company UTE and Tether over the size of the electricity supply contract. Tether’s Uruguay entity, Microfin, stopped paying electricity bills in May 2025 and notified UTE in June that it intended to terminate the contract. On July 25, UTE cut power to the mining sites. At that point, Microfin owed nearly $5 million, while monthly electricity costs were about $2 million. Tether then notified Uruguay’s labor authorities on Nov. 25, 2025 that it would cease operations, resulting in 30 job cuts out of 38 local positions. UTE said Microfin settled the outstanding debt in December. The report also noted that 98% of Uruguay’s electricity generation in 2025 came from renewable sources.
Tether entered Uruguay in May 2023 and planned to work with locally licensed companies on sustainable Bitcoin mining while also investing in energy production.
The project included two mining sites in Florida department. Each was estimated at $60 million, putting total investment at about $120 million.
Dispute with UTE over power contract capacity
Uruguay’s state-owned power company UTE and Tether fell into a dispute over the size of the electricity supply contract. Microfin, Tether’s entity in Uruguay, stopped paying electricity bills in May 2025 and informed UTE in June that it intended to terminate the contract.
UTE cut power to the mining sites on July 25. At that time, Microfin owed nearly $5 million, and its monthly electricity bill was about $2 million.
Operations stopped and jobs cut
On Nov. 25, 2025, Tether notified Uruguay’s labor authorities that it would stop operations. The move eliminated 30 of 38 local jobs.
UTE said Microfin cleared the outstanding debt in December. The report also said 98% of Uruguay’s electricity generation in 2025 came from renewable sources.
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