Tether's Green Mining Dreams Shattered by Grid Realities

Tether's Mining Expansion in Uruguay Hits Roadblock

The cryptocurrency company Tether faced difficulties with its mining expansion project in Uruguay, a country known for its renewable energy resources. In 2023, Tether announced that it would invest in energy production and sustainable Bitcoin mining in Uruguay with a local licensed company. The company praised the country's renewable generation and reliable grid but did not disclose the power-contract terms.

A dispute arose between Tether and state utility UTE over electricity supply, leading to the abandonment of two mining sites. A former contractor estimated that Tether invested around $120 million in the project, with each site costing roughly $60 million. Tether did not confirm this figure or explain the dispute.

The issue was not about Uruguay's renewable energy resources but rather about the commercial right to use power at the scale Tether wanted. The company's promise of green Bitcoin mining was put to the test, revealing a gap between an appealing national energy profile and site-level agreements.