Tether’s $120 million Uruguay mining failure now shadows its next Bitcoin bet in Brazil

Tether’s Bitcoin mining operation in Uruguay collapsed after a dispute over electricity allocation between its local entity Microfin and state utility UTE. The disagreement, which began in late 2024, led to unpaid power bills, contract termination notices, and ultimately the disconnection of both sites in July 2025.

Uruguay project breakdown

According to a former contractor, Tether spent roughly $60 million at each of the two sites in Uruguay’s Florida department, totaling an estimated $120 million in expenditures. The figure reflects estimated spending, not a confirmed loss disclosed by Tether.

Microfin interpreted its electricity contract as a minimum allocation that could be expanded, while UTE treated it as a maximum limit. The mismatch caused Microfin to stop paying bills in May 2025, announce contract termination in June, and fail to reach revised terms. UTE cut power on July 25, and by November Tether informed labor authorities of a shutdown and major layoffs. The outstanding debt to UTE was settled in December.

Implications for the Brazil pilot

Following the Uruguay setback, Tether partnered with Adecoagro, a major South‑American agricultural and renewable‑energy producer, on a new pilot in Brazil. The memorandum of understanding announced in July 2025 outlines a 230 MW renewable generation capacity for Adecoagro, but the Bitcoin mining pilot itself will use only about 10 MW of surplus renewable energy.

The Brazil project is considerably smaller than the Uruguay effort and focuses on surplus power that would otherwise be sold on the spot market. While the disclosures do not indicate that Tether altered the Brazil plan because of the Uruguay experience, the new venture will test whether clear power‑supply terms and reliable capacity can support a viable mining operation.

Key takeaways

• Dispute over electricity allocation led to the shutdown of two Uruguay mining sites.
• Estimated spending on the Uruguay venture was about $120 million.
• Tether’s Brazil pilot, in partnership with Adecoagro, will use roughly 10 MW of surplus renewable energy.
• The Brazil effort represents a smaller, more focused test of Tether’s regional mining strategy.