Tether abandons $120M Uruguay Bitcoin mining project after power dispute

Tether’s planned Bitcoin mining expansion in Uruguay has collapsed after an electricity supply dispute with state utility UTE left two facilities without enough power, ending a project estimated to have cost around $120 million. Summary Tether invested an estimated $120 million across two Bitcoin mining sites in Uruguay’s Florida department. A dispute with state utility UTE over electricity allocations left the facilities without enough power to operate consistently. UTE disconnected the mining sites in July 2025 after contract negotiations failed and electricity bills went unpaid. Tether has continued investing in Bitcoin mining elsewhere, including renewable energy projects in Brazil and mining infrastructure. Reuters has reported that Tether abandoned two mining sites in Uruguay’s Florida department after disagreements over electricity allocations disrupted operations and eventually led its local entity, Microfin, to terminate contracts with UTE. The project had been presented in 2023 as Tether’s first major Bitcoin mining venture in South America, with Uruguay serving as a testing ground before potential expansion into Brazil, Paraguay and Argentina. A former contractor told Re...