Tether Abandons Uruguay Mining Project After UTE Power Dispute
Tether ended its Uruguay bitcoin mining sites following a contract dispute with state utility UTE that produced unpaid bills and a July 2025 power cutoff.
Tether abandoned an estimated $120 million bitcoin mining project in Uruguay after a dispute with state-owned electricity provider UTE over contract terms for power allocation at two sites in the Florida department.
The disagreement centered on whether the agreed power figure represented a minimum amount that could increase with operations or a maximum limit. Tether viewed it as the former; UTE treated it as the latter. The facilities began operations after the May 2023 announcement and initially generated revenue, but shortages occurred as demand grew.
Microfin, Tether’s Uruguayan legal entity, stopped paying bills roughly two months after the March 2025 government change. UTE disconnected power on July 25 2025. Tether notified labor authorities on November 25 2025 that it would cease operations and dismiss most project employees.
Reuters cited a person familiar with the project for the $120 million figure; Tether has not confirmed the amount. The company has not issued a public statement on the reasons for closure or any total loss. Timeline details draw from Reuters review of meeting records and sources familiar with negotiations.
Regional investments continue
Tether has continued regional mining investments totaling over $2 billion across 15 sites in Uruguay, Paraguay, and El Salvador. Chief Executive Paolo Ardoino stated in June 2025 that the company expected to become one of the world’s largest bitcoin miners.