Tether Exits Uruguay Bitcoin Mining Venture After Power Dispute Stalls $120 Million Project
Summary
- Tether exited its Bitcoin mining business in Uruguay after a power supply dispute with UTE, the country’s state-owned electricity company.
- The Uruguay mining project is estimated at about $120 million, and Tether notified authorities that it would shut down the local operation and lay off most employees.
- Tether is still pursuing renewable energy-based Bitcoin mining investments in other regions, while Reuters reported that high power prices, Bitcoin prices and opportunities to shift into AI data centers are hurting mining profitability.
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Tether, the issuer of the world’s largest stablecoin, USDT, has exited its Bitcoin mining business in Uruguay after a contract dispute with the country’s state-owned power company, The Block reported.
The Block reported on August 23 that Tether and Uruguay’s state power utility, UTE, clashed over electricity supply for two mining sites in Florida, Uruguay. Tether interpreted the contracted power level as a minimum baseline that could later be increased, while UTE viewed it as the maximum amount available under the agreement.
The two sites initially operated normally. As power demand rose, however, they were unable to secure enough electricity. The two sides tried to amend the contract to resolve the dispute but failed to reach a final agreement.
Microfin, Tether’s Uruguayan unit, then stopped paying electricity bills and told UTE in June 2025 that it intended to terminate the contract. UTE halted electricity supply to the two mining sites on July 25, 2025.
Tether later notified Uruguay’s labor authorities in November 2025 that it would shut down the local business and lay off most of its employees, according to the report. The project is estimated to have involved about $120 million, though Tether has never disclosed an official investment figure.
Tether had originally positioned Uruguay as a beachhead for expanding its Bitcoin mining business in South America. When it entered the market in 2023, the company cited the country’s abundant renewable energy and stable power grid as key advantages. It had planned to test the business in Uruguay before expanding mining operations to Brazil, Paraguay and Argentina.
Still, Tether has not abandoned all of its South American mining investments. The company has continued related projects elsewhere, including by acquiring a 70% stake in renewable energy company Adecoagro and planning to use surplus electricity for Bitcoin mining. Reuters reported that high power costs, Bitcoin prices and the opportunity to convert sites into artificial intelligence data centers are making it harder for miners to sustain profitability.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.