Tether's Uruguay Bitcoin Mining Dream Crashes Over Energy Dispute

Tether's ambitious plans to launch bitcoin mining operations in Uruguay unraveled over a dispute about energy supply.

The company, which issues nearly two-thirds of all stablecoins in circulation, had invested an estimated $120 million in two mining sites in the department of Florida.

Uruguay was seen as the perfect platform for Tether's plans due to its abundant renewable energy and robust grid.

However, a fundamental disagreement arose over how much electricity would be supplied to the mining sites, with Tether believing a clause in their contract allowed for increased power supply, while UTE viewed it as a maximum allocation that could not be exceeded.

The dispute had been ongoing since November 2024 and was compounded by a shift in Uruguay's political landscape after a left-leaning government took office in March 2025.