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Tether abandons $120 million Uruguay Bitcoin mining project after contract fight

Uruguay’s state power utility UTE cut power to Tether’s mining sites in July 2025 after Tether stopped paying electricity bills and representatives did not attend a revised contract signing.

Reported · Written up by our desk · Market Structure

Tether has abandoned a planned Bitcoin mining project in Uruguay that reportedly cost around $120 million, after a power contract dispute with the country’s state owned utility, according to The Block citing Reuters.

The report says UTE cut power to Tether’s mining sites in July 2025 after Tether’s local representatives did not attend the signing of a revised contract, and Tether stopped paying its electricity bills, per an internal UTE briefing Reuters reviewed.

According to the report, the parties disagreed on whether the contract’s power figure was a minimum that could be increased or a hard cap, and as electricity demand rose the operation sometimes lacked sufficient power for days at a time, according to two former contractors.

The dispute intensified after a change in government, with Reuters reporting that the election of Uruguay’s left leaning government and subsequent appointment of new UTE directors led to a harder stance on the contract, according to sources cited in the piece.

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