Tether's efforts to expand its Bitcoin mining operations in Uruguay have hit a significant roadblock. The state-owned national electricity provider, UTE, cut power to Tether's local partner, Microfin, over $5 million in unpaid bills. This dispute, which began with mounting costs and unresolved debt, has frozen all mining activities and expansion plans in the Flores and Florida regions.
Tether, which entered Uruguay in 2023 with a promise of sustainable, renewable-powered mining, had big plans to control about 1% of the global Bitcoin network's hash rate. This setback highlights the challenges of an energy-intensive business like crypto mining in markets with strict regulations and financial guarantees.
While Tether has emphasized that its stablecoin reserves are separate from its operational ventures, the incident raises questions about the viability of its strategy to diversify its business beyond USDT issuance. Although negotiations are ongoing, the timeline for restarting operations remains uncertain.
September 2025, Cryptoniteuae