Tether Exits Unprofitable Uruguayan Mining Venture Amid Electricity Dispute

Tether's ambitious $120 million Bitcoin mining project in Uruguay has come to an abrupt end due to a long-standing dispute with state utility UTE over electricity supply. The disagreement centered on differing interpretations of power allocation limits, which led to a halt in mining activities and significant losses for the company.

The conflict was exacerbated by political changes and failed contract negotiations, ultimately rendering the project unprofitable despite initial plans to expand mining across South America.

Tether continues to invest in mining and renewable energy projects in other countries, such as Brazil. Meanwhile, some miners are shifting their focus to AI and high-performance computing due to shrinking Bitcoin margins.