# Tether Bitcoin mining project exit in Uruguay > Live situation record from CLSTR: https://clstr.news/situations/tether-bitcoin-mining-project-exit-in-uruguay > Updated: 2026-08-24T09:23:20.000Z. Sources: 7. Developments: 2. Tether has abandoned a Bitcoin mining project in Uruguay, an initiative estimated to have cost approximately $120 million. The project, which involved two sites in the Florida department, 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, regarding contractual interpretations of electricity capacity. Tether maintained that its agreement established a minimum guaranteed supply that could be increased, while UTE maintained the contract set a maximum limit. Tensions escalated following a change in government in March 2025 and the appointment of new UTE leadership, which adopted a stricter stance on contract enforcement. After UTE disconnected power to the facilities in July 2025, Tether notified labor authorities of its intention to cease operations and lay off most staff. Microfin reportedly settled its outstanding debts in December. ## Timeline ### 2026-08-24: Tether exits $120 million Bitcoin mining project in Uruguay Tether has exited its $120 million Bitcoin mining project in Uruguay following a contractual dispute with state electricity provider UTE over power capacity limits. 4 sources. https://clstr.news/cluster/tether-exits-120-million-bitcoin-mining-project-in-uruguay ### 2026-08-21: Tether abandons $120 million bitcoin mining project in Uruguay Tether has abandoned $120 million worth of bitcoin mining operations in Uruguay following a contract dispute with state utility UTE regarding electricity supply limits. 3 sources. https://clstr.news/cluster/tether-abandons-120-million-bitcoin-mining-project-in-uruguay --- Cite as: Tether Bitcoin mining project exit in Uruguay. CLSTR, https://clstr.news/situations/tether-bitcoin-mining-project-exit-in-uruguay