Tether Abandons $120M Uruguay Bitcoin Mining Project Over Power Dispute
Tether's ambitious Bitcoin mining project in Uruguay has been abandoned after a dispute over electricity supply. The stablecoin issuer invested around $120 million in two sites, but ultimately couldn't secure enough power to keep machines operating continuously.
The disagreement centered on the interpretation of Tether's electricity contract with state utility UTE. While Tether believed it had secured a minimum allocation of power that could be increased later, UTE saw it as the maximum amount. This distinction was critical for a Bitcoin mining operation, which relies heavily on running large numbers of specialized computers continuously.
The dispute became harder to resolve after Uruguay's new government took office in March 2025 and appointed new directors at UTE. Tether eventually stopped paying electricity bills and informed UTE that it intended to terminate its contracts. The two sides attempted to negotiate revised terms, but ultimately failed to reach an agreement.
According to a former contractor, each site was estimated to have cost around $60 million, putting the combined investment at about $120 million. Uruguay was seen as an attractive location due to its renewable energy resources and reliable electricity grid. However, the country's power costs are relatively high compared to other locations favored by large-scale crypto miners.