Tether’s Bitcoin Mining in Uruguay Faces Power Cut Unpaid Bills

TLDR

Table of Contents

Tether’s Bitcoin mining expansion in Uruguay is stalled due to unpaid $5M energy bills.
UTE’s power cut to Tether’s mining sites halts operations in Uruguay’s Flores and Florida.
Tether’s local partner Microfin faces financial strain amid energy payment disputes.
Uruguay’s strict energy payment policies hinder Tether’s long-term Bitcoin mining goals.

Tether’s Bitcoin mining expansion in Uruguay has encountered a major setback as the state utility company, UTE, cut power to two mining facilities due to nearly $5 million in unpaid bills. The disruption has halted the company’s expansion plans in the Flores and Florida regions. This issue comes after months of financial tensions between Tether’s local partner, Microfin, and the utility. The setback raises concerns about the sustainability of large-scale energy-intensive crypto projects in regulated markets.

Unpaid Bills and Power Cut Off

The power cutoff, which occurred in late July 2025, has thrown a wrench into Tether’s plans for expanding its mining operations in Uruguay. UTE, Uruguay’s state-owned electricity provider, suspended power to Tether’s mining facilities after several months of missed payments, which accumulated to a sum of $5 million by July.

The unpaid bills relate to a growing debt owed by Tether’s local partner, Microfin, who was responsible for managing the mining operations.

Despite a Memorandum of Understanding (MoU) signed between UTE and Microfin in June 2025, which was meant to resolve the debt issue, payments remained unsettled. As a result, UTE proceeded with the power shutdown, following their standard procedure for defaulting customers.

With the energy cut, the mining sites are now at a standstill, which directly affects Tether’s broader ambitions of securing 1% of the global Bitcoin mining network.

Delays and Financial Pressure

The power shutdown has led to delays in Tether’s planned expansion in the region. The facilities that were crucial to their operations are now inactive, resulting in a halt to their Bitcoin mining activities. This disruption also has a direct financial impact, as the company will likely face additional costs for reactivating its mining operations once the power is restored.

Tether’s partnership with Microfin was expected to be a key element of the company’s move into energy-efficient Bitcoin mining, with Uruguay’s abundant renewable energy resources as a key selling point.

However, the growing financial tensions between Microfin and UTE show the risks associated with energy-intensive projects in emerging markets. Experts note that the stability of energy costs is critical to the profitability of such projects. Any fluctuations or payment issues can have long-lasting consequences, making it difficult for mining ventures to remain sustainable.

Challenges of Energy-Intensive Crypto Projects

This situation highlights the challenges faced by foreign investors who rely on third-party operators for critical infrastructure. While Uruguay’s renewable energy potential made it an attractive destination for green crypto ventures, the recent power dispute reveals vulnerabilities in the business model. Microfin, the local operator, now faces reputational and financial risks due to the ongoing debt issue.

The dispute has also raised concerns about how foreign capital is managed in emerging economies, especially when it comes to large-scale energy agreements.

Industry analysts have pointed out that while Uruguay’s clean energy resources make it an appealing location for Bitcoin mining, stricter payment guarantees and regulatory frameworks can expose such projects to significant risks. For Tether, resolving this matter will be crucial to its broader ambitions in both the cryptocurrency and energy sectors.

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