Tether Abandons $120M Uruguayan Bitcoin Mining Project Amid Electricity Dispute

Tether's $120 million Bitcoin mining project in Uruguay has collapsed due to a dispute with state utility UTE over electricity allocations. The disagreement centered on contract terms about power limits, which worsened due to political changes and unpaid bills.

The issue led to power disconnections in July 2025, forcing Tether's local entity to cease operations and lay off most staff. Despite this setback, the company continues to invest in Bitcoin mining in Latin America, including renewable energy projects in Brazil.

The Uruguay project was initially a testbed for broader regional expansion but proved unviable due to electricity supply issues and economic pressures on Bitcoin mining.