Tether’s bitcoin mining project in Uruguay has been shut down after a dispute over power supply terms with state utility UTE, bringing a roughly $120 million investment to a halt. The operation, built in Florida department with local licensed partner Microfin, started after Tether’s May 2023 push into Uruguay, where it cited a power mix that is 98% renewable and a stable grid supported mainly by hydro and wind generation. According to the source material, the conflict centered on how the electricity contract was interpreted. Tether treated the contracted supply figure as a guaranteed minimum and expected to request more power as the mining sites expanded. UTE, by contrast, viewed that same figure as a hard cap. As electricity demand rose, the two sites reportedly faced repeated power restrictions, at times going days without enough supply to keep mining machines running at full capacity. The breakdown accelerated in 2025. Microfin stopped paying electricity bills in May and sent notice to terminate the contract in June. Reuters, citing an internal brief it reviewed, reported that UTE had prepared an amended contract, but Tether representatives did not attend the signing. UTE cut power on July 25, 2025. Local outlet El Observador said arrears had approached $5 million, with monthly bills at about $2 million. Tether later notified labor authorities on Nov. 25, 2025 that operations had ceased, and broadcaster Teledoce said 30 of 38 employees were laid off.

Tether’s Bitcoin mining operation in Uruguay came to a halt after a long-running dispute over electricity supply terms ended with a power cutoff by state utility UTE on July 25, 2025. The project, developed with locally licensed company Microfin in the rural Florida Department, was estimated by a former contractor to have cost about $120 million across two sites. At its peak, the operation employed 38 local workers and was presented as a renewable-energy mining play in a country where 98% of the power mix comes from renewable sources, mainly hydro and wind. The conflict centered on how a number in the electricity contract should be interpreted. Tether’s side reportedly treated it as a guaranteed supply floor, while UTE treated it as a hard ceiling. As power demand rose, the sites faced repeated restrictions, at times going days without enough electricity to keep mining machines running continuously. By May 2025, Microfin had stopped paying power bills, and in June it notified UTE that it was terminating the contract. Local media later reported the unpaid balance had approached $5 million, with monthly bills near $2 million. Tether formally notified labor authorities of the shutdown on Nov. 25, 2025, and local broadcaster Teledoce said 30 of 38 employees were laid off.

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.

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.

Reuters said Tether's Bitcoin mining project in Uruguay has shut down after a dispute with state-owned power company UTE over a power supply contract. The project was estimated at about $120 million. The two sides disagreed on whether the contracted power amount was a minimum guaranteed supply or a ceiling. After a new agreement was not signed and electricity bills went unpaid, UTE cut power to two mining sites on July 25, 2025. Tether then ended local operations and laid off most staff. Tether had described the Uruguay project as its "first step" into South America's Bitcoin mining market. It is still expanding its regional energy and mining footprint, having bought 70% of renewable energy company Adecoagro and planning to use its remaining power for Bitcoin mining.

Tether’s $120 million Bitcoin mining project in Uruguay has been terminated, according to a Reuters report cited by Techub. The report said Uruguay’s state-owned power company, UTE, cut electricity to Tether’s mining site in July 2025. The cutoff was linked to a contract dispute after a Tether representative did not attend the signing ceremony for a revised agreement. The halted power supply led to the end of the mining project, bringing the dispute into public view. The report did not provide additional details beyond the contract issue and the timing of UTE’s action.

Tether has abandoned two Bitcoin mining sites in Uruguay after a dispute with state utility UTE over the amount of electricity available to the facilities, Reuters reported via Bitcoin News on X. A former contractor estimated that Tether invested about $60 million in each site, or roughly $120 million in total. Tether said in 2023 that Uruguay was a “perfect platform” thanks to renewable energy and a reliable grid. The projects initially generated revenue, but later struggled to secure enough power to keep operating steadily. The dispute escalated in 2025, when Tether’s local entity stopped paying electricity bills and UTE cut power to the sites in July. Tether then halted operations and laid off most staff. The outstanding debt was settled in December. Reuters said Uruguay had been intended as a testbed for Tether’s broader Bitcoin mining expansion in South America. Tether also said its global investment in energy production and Bitcoin mining has exceeded $2 billion.

Tether stopped its Bitcoin mining operation in Uruguay in 2025, according to Reuters. Documents and people familiar with the matter said the project later fell apart because Tether and Uruguay’s state power company, UTE, held different interpretations of the contract’s power-supply terms. Tether viewed the clause as setting a minimum amount of electricity that could be increased, while UTE treated it as a maximum cap that could not be exceeded. The disagreement ended the project, based on the account cited by Reuters.