Tether abandons $120 million bitcoin mining project in Uruguay

Tether, the issuer of the world’s largest stablecoin, has abandoned two bitcoin mining sites in Uruguay following a dispute with the state utility, UTE, over electricity supply. The company reportedly invested approximately $120 million, with $60 million allocated to each of the two sites located in the Florida department.

The conflict centered on a disagreement regarding contract clauses: Tether viewed its agreement as a minimum guaranteed electricity supply that could be increased, whereas UTE maintained the contract established a maximum limit. The situation escalated following a change in government in March 2025, which led to new UTE directors taking a stricter stance on renegotiations.

Tether’s local entity, Microfin, ceased electricity payments in May 2025 and moved to terminate contracts in June. After UTE cut power to the sites in July, Tether notified labor authorities in November that it would cease operations and lay off most staff. Microfin settled its outstanding debts in December.