Tether Bitcoin mining dispute cuts power to $120M Uruguay sites
A power dispute in rural Uruguay just wiped out one of Tether’s boldest bets outside the stablecoin business. According to a Reuters investigation, the company behind USDT poured roughly $120 million into two Bitcoin mining sites in Uruguay’s Florida department, only to shut them down after a Tether Bitcoin mining dispute with the state-owned utility spiraled into unpaid bills, a total power cutoff, and dozens of layoffs. The episode, corroborated by The Block, offers a rare look at how quickly a clean-energy mining project can collapse when contract terms and electricity pricing go unresolved.
Key takeaways
- Tether invested about $120 million across two Bitcoin mining sites in Uruguay’s Florida department, roughly $60 million each.
- The project collapsed after a contract dispute with UTE, Uruguay’s state power company, over how much electricity the sites were entitled to receive.
- UTE cut electricity to the sites on July 25, 2025, after Microfin, Tether’s local entity, racked up nearly $5 million in arrears.
- The shutdown eliminated 30 of the company’s 38 local jobs.
- Uruguay generates 98% of its electricity from renewable sources, mostly hydropower and wind, yet power costs remained too high to keep the mining operation competitive.
Tether’s $120 Million Bitcoin Mining Bet in Uruguay
Tether entered Uruguay in May 2023, framing the country as an ideal launchpad for its mining ambitions thanks to its renewable-heavy grid and stable political environment. The company said it would invest in energy production and run sustainable Bitcoin-mining operations through a locally licensed entity, though it shared few financial specifics at the time.
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