Tether exits $120 million Bitcoin mining project in Uruguay

Tether has abandoned its Bitcoin mining project in Uruguay, an initiative estimated to have cost approximately $120 million. The project was intended to serve as a pilot for the company’s expansion into South American markets.

The withdrawal follows a prolonged dispute between Tether’s local entity, Microfin, and the state-owned electricity provider, UTE. The conflict centered on contractual interpretations regarding electricity capacity. Tether maintained that the agreed-upon power levels were a minimum that could be increased based on demand, whereas UTE viewed the levels as a fixed ceiling.

As electricity demand grew, the mining facilities in Florida Province experienced persistent power shortages. Tensions escalated following the inauguration of President Yamandú Orsi in March 2025 and the subsequent appointment of new leadership at UTE, which adopted a stricter stance on contract enforcement. After UTE disconnected power to the facilities in July 2025, Tether notified Uruguayan labor authorities of its intention to close operations and lay off most staff.