Tether’s $120M Uruguay Mining Shutdown Clouds Brazil 10MW Pilot

Tether’s Uruguay Bitcoin-mining operation was halted after a disagreement with Uruguay’s state utility UTE over electricity allocation terms. A former contractor estimated roughly $60 million was spent at each of two sites in Florida department, putting total spending at about $120 million; Tether has not confirmed that figure as a loss.

The local operator, Microfin, and UTE disagreed on whether the contracted allocation was a minimum that could be expanded or a hard maximum. The dispute began by late 2024. Microfin stopped paying power bills in May 2025 and informed UTE in June 2025 that it intended to terminate the contracts. UTE cut power to the sites on July 25, 2025. By November 2025, Tether notified labor authorities it would cease operations and lay off most staff. Microfin settled outstanding UTE debt in December 2025.

Microfin treated the allocation as a floor that could be increased if needed; UTE maintained the allocation was the maximum supply available under the agreement. Negotiations over revised terms did not produce a new contract, and the service interruption led to the winding down of activity at both sites.

Adecoagro representatives visited the Uruguay facilities in February 2025 while exploring renewable-powered mining with Tether. The two parties signed a memorandum of understanding in July 2025 that mentioned 230 megawatts of generation capacity across Adecoagro’s assets. Adecoagro confirmed the Brazil pilot itself will use about 10 megawatts of surplus renewable energy that would otherwise be sold into the spot market; the 230-megawatt figure refers to Adecoagro’s broader generation capacity across South America, not to power committed to Bitcoin mining.

Public disclosures about the Brazil project do not indicate the pilot was redesigned because of the Uruguay experience, nor do they show the Brazil venture will face identical contractual issues. The Brazil pilot is structured to pair mining with renewable generation and will specify contract terms and capacity allocation for the roughly 10 megawatts Adecoagro has earmarked for the project.

When Tether launched the Uruguay venture in 2023, it cited the country’s renewable generation and grid reliability as reasons for choosing the location. The Uruguay sequence-contract ambiguity, missed payments, service disconnection and local shutdown-occurred between late 2024 and December 2025 and is part of the public record surrounding Tether’s regional mining activities.