Tether Abandons Uruguay Bitcoin Mining Project Amid Electricity Dispute

Tether's ambitious Bitcoin mining project in Uruguay has come to an abrupt end due to a dispute over electricity supply. The company had announced plans to build two mining facilities in the country, citing its reliable power grid and high-quality internet as major advantages.

The total value of the project was estimated at around $120 million, with each facility costing about $60 million. However, the project's economics became increasingly challenging due to reduced mining rewards after the April 2024 halving and rising energy costs.

A key conflict emerged between Tether and state-owned power company UTE over the amount of electricity available under their contract. While Tether believed the terms set a minimum supply level that could later be increased, UTE interpreted it as a maximum limit that could not be exceeded.