Tether Abandons $120M Uruguayan Mining Project Amid Contract Dispute

Tether's ambitious $120 million Bitcoin mining project in Uruguay has come to an end after authorities cut power supply due to a contract dispute. The stablecoin issuer invested heavily in two mining facilities, citing abundant renewable energy and a robust grid.

Operations began in February 2024, but Tether sought to increase the amount of electricity allocated to its facilities. However, Uruguay's state-owned public electricity utility provider UTE argued that the contract represented the maximum allocation, which could not be exceeded.

Tether's legal entity in Uruguay, Microfin, stopped paying electrical bills, and UTI cut power supply to both Bitcoin mining sites. Tether told authorities it would cease operations and lay off staff, effectively ending its foray into Uruguayan mining.