Author: Heart of Computing Power

On July 25, 2025, an engineer from the National Electric Company of Uruguay (UTE) pulled the power switch.

In an instant, the Bitcoin mining project in the rural area of Florida, which had been operating for two years, fell silent. This mining operation, with an investment of about 120 million dollars, was shut down, resulting in 30 out of 38 local employees losing their jobs.

The South American green energy flagship project, once filled with hope, ended regrettably, leaving behind an unfinalized contract and nearly 5 million dollars in arrears.

1. Heading to South America with 120 million

Tether's venture to build a mining facility in Uruguay initially seemed like a win-win layout.

In May 2023, Tether, the world's largest stablecoin issuer, announced its bold entry into Uruguay.

The rationale was sound; Uruguay boasts 98% renewable energy in its electricity structure, primarily relying on hydropower and wind power, with a stable grid and friendly regulations.

At the time, Tether planned to collaborate with the local licensed company Microfin to establish two mining sites in Florida.

Previous contractors estimated that Tether later spent about 60 million dollars at each site, totaling around 120 million dollars.

For Tether, this was not just about mining, but also a crucial step towards investing profits into real energy.

At the time, the company was holding enormous profits, with an estimated annual profit of about 6.2 billion dollars for 2023, actively diversifying into energy, AI, and other fields.

When the project first commenced, everything ran smoothly. According to former contractors interviewed by Reuters, both sites were producing normally and generating revenue, and the local team expanded to 38 people.

2. A power outage stalemate triggered by a number

However, the good times were short-lived, as both parties quickly found themselves at an impasse over the core issue of electricity supply.

The root of the conflict lay in a specific number in the electricity contract. Tether interpreted the supply figure in the contract as a "guaranteed supply amount," believing that with the expansion of the mining facility, they could continue to request additional power.

However, the National Electric Company of Uruguay (UTE) determined that this number represented a "maximum limit" that should never be exceeded.

Yet Bitcoin mining machines require continuous operation 24 hours a day.

As the scale of the mining facility expanded and electricity demands increased, the two sites began to frequently encounter power restrictions, sometimes going several days without sufficient electricity, directly resulting in losses of computing power revenue.

By the end of 2024, the conflicts between the two sides had already surfaced.

By 2025, leftist President Yamandú Orsi took office in Uruguay, leading to a change in management at the electric company, which adopted a more hardline stance during negotiations.

The communication mechanisms became deadlocked, and the trust foundation for cooperation began to crumble.

3. Complete withdrawal within five months

After the trust broke, the project quickly slid towards an irretrievable end.

In May 2025, Microfin ceased payment of electricity bills.

In June, Microfin officially notified the electric company of the termination of the contract.

According to internal briefings reviewed by Reuters, the electric company actually prepared a revised contract in an attempt to salvage the project, but Tether representatives did not attend the signing ceremony.

On July 25, 2025, the electric company officially cut off power supply.

Local media El Observador reported that at this point, Microfin's arrears had approached 5 million dollars, with monthly electricity bills reaching about 2 million dollars, exceeding the amount of the initial security deposit provided.

On November 25, 2025, Tether formally notified the local labor department of the cessation of operations, and the television station Teledoce later confirmed that 30 out of 38 employees were laid off.

By December 2025, Microfin settled all debts.

4. When "green" does not mean "cheap"

The exit from this situation serves as a wake-up call for all companies investing in heavy assets overseas.

Firstly, there is the reality of costs.

Uruguay's electricity is indeed green, but in the global comparison of mining electricity prices, it does not hold a clear advantage.

Especially after the 2024 Bitcoin halving (the block reward dropping from 6.25 BTC to 3.125 BTC), the profit margins for the entire industry were significantly compressed, and the high electricity cost disadvantage, once masked by "green sentiment," became rapidly magnified.

Secondly, there is the certainty of regulations.

When Tether entered Uruguay, it also valued the region's renewable energy and political stability.

However, the management of utility companies changes with government shifts, leading to a change in negotiation strategies, which is not uncommon in Latin America.

For heavyweight projects that require stable electricity supply over the long term, policy continuity is harder to predict than the electricity price itself.

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Although the 120 million dollar loss is fully bearable for Tether, which has an annual profit exceeding 10 billion dollars and an investment portfolio exceeding 20 billion dollars, and its layouts in places like El Salvador are still ongoing,

it clearly illustrates a commercial rule.

In the world of heavy asset operations, no matter how great the computing power, it must be built on clear contractual consensus and real cost advantages.

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