Tether’s big Bitcoin mining plan in Uruguay has hit a snag. The country’s electricity company, UTE, cut power to Tether’s two mining facilities because of a whopping $5 million in unpaid bills.
The Power’s Off
This happened on July 25, 2025, just two years after Tether launched the project, boasting about Uruguay’s green energy. The problem started back in May 2025 when Tether fell behind on payments. Even after some talks, the debt kept growing, leading UTE to pull the plug.
Consequences and Costs
This power outage is a major blow. Tether’s mining operations are down, meaning less Bitcoin is being mined. Getting things running again will cost more money and time – renegotiating contracts, fixing things, and dealing with regulations could take weeks.
Uruguay’s Green Appeal
Tether chose Uruguay in 2023 because of its commitment to renewable energy (about 95% of its electricity comes from non-fossil sources). The plan was to mine Bitcoin sustainably and eventually control 1% of the global Bitcoin mining power. At the time, Tether’s CTO, Paolo Ardoino, touted the project as a way to combine technology, sustainability, and finance.
Silence from Tether
So far, neither Tether nor its local partner, Microfin, has commented on the situation.
Meanwhile, USDT Soars
On a brighter note for Tether, its stablecoin, USDT, just hit a new market cap high of $171.5 billion, making it the biggest stablecoin by far (58.9% market share) and the fourth-largest cryptocurrency overall.