The central dispute centered on contract interpretation. Tether understood a specified electricity figure as a minimum allocation subject to later increases as operations scaled, while UTE maintained the amount represented a maximum ceiling. A former contractor told Reuters the disagreement became critical when mining sites expanded and required additional power, with facilities going days without sufficient electricity. Internal UTE briefings indicate the conflict had materialized by November 2024.
The project began in May 2023 when Tether identified Uruguay as an entry point for South American mining expansion, citing the country’s renewable energy profile—99 percent of electricity generation came from renewable sources in 2024 according to U.S. Department of Commerce data—and grid reliability. Each of two sites in Florida department required approximately $60 million in capital expenditure. A promotional video from February 2024 showed mining halls near wind turbines with roads named “Memepool Avenue” and “Halving Street.”
Political transition complicated resolution. After Uruguay’s left-leaning government took office in March 2025 and appointed new UTE directors, the utility adopted a harder negotiating stance. A final attempt at settlement failed when Tether representatives did not attend a scheduled contract signing despite UTE board approval of revised terms, according to meeting minutes.
Uruguay represented a testing ground before planned expansion into Brazil, Paraguay and Argentina. Tether announced a Brazilian mining partnership with agricultural producer Adecoagro in July 2025, the same month UTE disconnected Uruguay sites. Pete Howson of Northumbria University characterized mining infrastructure as “hypermobile,” easily relocated when economics shift. The April 2024 Bitcoin halving reduced mining rewards, pressuring profitability across the industry and making energy costs more critical to operational viability.
This article was curated and published as part of our South American energy market coverage.
