Tether Bitcoin mining shut down in Uruguay over UTE power contract dispute

Tether’s Bitcoin mining sites in Uruguay’s Florida Department have been shut down following a dispute with the state utility UTE over the interpretation of a key power-supply contract term. The project, involving operator Microfin, ran for about two years and required an estimated $120 million investment, employing 38 local workers (30 later laid off). The latest reporting adds the full payment-and-cutoff sequence: Microfin stopped paying electricity bills in May 2025, issued a termination notice in June 2025, and UTE cut power on July 25, 2025. Reports say Microfin’s overdue payments approached ~$5 million, with electricity charges around ~$2 million per month. By Nov 25, 2025, Tether told Uruguay’s labor authorities operations had stopped and confirmed 30 job cuts; Microfin settled the remaining debt by December 2025. Root cause was contractual clarity. UTE treated the contract number as a maximum electricity cap, while Tether/Microfin viewed it as a minimum “scalable” supply baseline. As mining demand rose, the sites reportedly experienced frequent load limits, including multi-day insufficient power, eroding mining economics—especially after the 2024 Bitcoin halving tightened margins. For traders, this is a reminder that “green energy” does not automatically protect profitability. The direct effect on BTC price is likely limited, but the episode may reinforce bearish sentiment toward heavy, high-fixed-cost mining expansion and counterparty/operational risk.