Tether Abandons Uruguay Bitcoin Mining Venture Amid Power Dispute

Tether's $120 million Bitcoin mining venture in Uruguay has hit a snag due to a power dispute with UTE, the country's state-owned electricity company.

The company had entered the Uruguayan market in 2023, citing the country's abundant renewable energy and stable power grid as key advantages. However, a contract dispute over electricity supply for two mining sites has led to Tether notifying authorities that it would shut down the local operation and lay off most employees.

The project's estimated value is $120 million, but Tether had never disclosed an official investment figure. The company had planned to test its business in Uruguay before expanding operations to Brazil, Paraguay, and Argentina.

Tether has not abandoned all of its South American mining investments, however. It has continued related projects elsewhere, including acquiring a 70% stake in renewable energy company Adecoagro and planning to use surplus electricity for Bitcoin mining.