Tether's Bitcoin Mining Operation in Uruguay Halted Due to Power Contract Dispute

Tether's Bitcoin mining operation in Uruguay has been halted due to a dispute over the power supply contract and unpaid electricity bills. The investment scale for the two mining sites is estimated at $120 million, and the local company Microfin has laid off 30 of its 38 employees. According to internal documents from Uruguay's state power company UTE, Tether's mining plans have effectively collapsed. Tether is estimated to have invested about $60 million in each of the two mining sites. The crux of the dispute lies in the interpretation of the power supply quantity; Tether viewed it as a minimum supply requirement, while UTE considered it a ceiling that could not be exceeded. Microfin stopped paying electricity bills in May 2025 and informed UTE of its intention to terminate the contract in June. UTE attempted to maintain the operation with a revised contract, but Tether's representatives did not participate in the signing process. UTE ceased power supply to the mining site on July 25, 2025. The unpaid electricity bills amount to approximately $5 million, with monthly electricity costs reported to be around $2 million. Tether notified of the operational halt and layoff plans on November 25, 2025. The Uruguayan electricity union AUTE stated that Microfin entered into a five-year contract in 2023 but stopped paying electricity bills due to unprofitability. Bitcoin mining is heavily reliant on electricity costs, and fluctuations in power prices and supply stability can pressure profitability.

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