Tether's Uruguay Bitcoin Mining Plans Collapse Amid Energy Supply Dispute

Tether's ambitious bitcoin mining plans in Uruguay have unraveled due to a dispute over energy supply. The company, which has issued nearly two-thirds of all stablecoins in circulation, had invested $120 million in two mining sites in the department of Florida.

The project was intended as a testing ground for Tether's bitcoin mining expansion across South America, but it ultimately failed due to a disagreement between Tether and state utility UTE over electricity supply. The dispute began in November 2024, and despite efforts to renegotiate the contract, the issue persisted.

Tether had touted Uruguay as an ideal location for its mining operations due to its abundant renewable energy and robust grid. However, the company's plans were derailed by a shift in Uruguay's political landscape, which led to a harder line on allowing Tether to renegotiate the energy supply contract.