Tether shuts down Uruguay project due to power dispute: $120 million Bitcoin mining investment comes to an end

Stablecoin issuer Tether entered Uruguay in May 2023, planning to engage in sustainable Bitcoin mining and invest in energy production with local licensed companies. The project has two mining sites in the Florida province, with an estimated investment of 60 million USD each, totaling approximately 120 million USD.

Uruguay's state-owned electricity company UTE had a disagreement with Tether regarding the electricity supply contract amount. Tether's Uruguayan entity Microfin stopped paying electricity bills in May 2025 and notified of its intention to terminate the contract in June; on July 25, UTE cut off power to the mining site, with Microfin owing nearly 5 million USD and monthly electricity costs of about 2 million USD.

On November 25, 2025, Tether notified the Uruguayan labor department of its cessation of operations, with 30 out of 38 local positions being eliminated. UTE stated that Microfin had settled its debts by December; in 2025, 98% of Uruguay's electricity generation came from renewable energy.