State electricity provider UTE disconnected the two sites after a contract dispute
Tether abandoned a Bitcoin mining project in Uruguay after a contractual dispute with state electricity company UTE, according to Reuters. A source familiar with the agreement estimated the investment at around $120 million, a figure Tether had not made public.
The two sites, in the department of Florida, were operated by Tether’s Uruguayan subsidiary Microfin. The disagreement concerned the amount of electricity set out in the contract: Tether considered the agreed level a minimum threshold that could be expanded, while UTE considered it a maximum cap. Two former contractors told Reuters that, as demand rose, the facilities sometimes lacked sufficient power for days.
The parties sought to agree on a revised contract, but Tether representatives did not attend the signing, according to minutes reviewed by Reuters. Microfin stopped paying electricity bills and informed UTE in June of its intention to terminate the contracts.
With the agreement unsigned and bills unpaid, UTE cut power to the two sites on July 25, 2025. Tether later notified Uruguayan labour authorities that it was ending operations and dismissing most of its staff, according to Reuters.
