Tether Abandons $120M Uruguay Bitcoin Mining Project

The collapse of the project in the Florida department stems from a fundamental disagreement regarding power contracts. While Tether’s local subsidiary, Microfin, interpreted its agreement with UTE as a guarantee of minimum power capacity, the utility viewed the figures as a hard limit. As energy demand at the sites climbed, the facilities faced frequent, multi-day outages, rendering operations unsustainable. By June 2025, Microfin moved to terminate its contracts, and UTE disconnected power to the sites the following month.

Political shifts in Uruguay further complicated the situation, as a new government took office in March 2025 and appointed a board at UTE that demanded stricter adherence to contract terms. Despite attempts to negotiate a memorandum of understanding, the project faltered when Tether representatives failed to appear for the final signing. While Microfin eventually cleared roughly $5 million in outstanding electricity debt by December, the infrastructure remains abandoned. The withdrawal underscores the volatility of industrial-scale mining, where narrow margins leave little room for contract disputes or grid inconsistencies.