Tether Abandons $120M Uruguay Mining Venture Amid Electricity Woes

Tether's ambitious Bitcoin mining venture in Uruguay has come to an abrupt end due to escalating electricity conflicts. The $120 million initiative, which aimed to utilize renewable energy and expand into South America, was crippled by disputes over power supply entitlements.

The conflict between Tether's subsidiary Microfin and state utility UTE had been brewing since 2023, when the company established its mining operations in Uruguay. Initially, the installations produced income, but electricity distribution challenges soon created substantial operational obstacles for both facilities.

UTE interpreted the stipulated electricity quantity as a ceiling supply accessible to Microfin, while Tether believed it was entitled to additional power allocation increases when operational requirements necessitated it. The disagreement intensified by November 2024, with UTE's documentation showing that mining requirements had deprived the installations of sufficient electricity for extended periods.