Tether Abandons $120M Uruguay Mining Operation Amid Electricity Dispute

Tether has closed its $120 million Bitcoin mining operation in Uruguay after a prolonged dispute over electricity supply. The company, behind the world's most traded stablecoin USDT, cited a disagreement with state-run utility UTE over power delivery to its two mining sites.

The conflict began when Tether's partner Microfin stopped paying electricity bills and notified UTE of plans to terminate existing contracts. Efforts to salvage the venture through a renegotiated agreement collapsed after Tether representatives declined to attend the contract signing.

The closure marks a major setback for Tether's regional mining ambitions, which aimed to expand into Brazil, Paraguay, and Argentina. However, rising electricity costs and stricter supply contracts have diminished Uruguay's appeal for Bitcoin mining.