Tether's Uruguay Mining Project Collapses Amid Power Contract Dispute

Tether's $120 million Bitcoin mining project in Uruguay collapsed due to a power contract dispute between Tether and state-owned utility UTE.

The two parties disagreed on how much power was entitled under the contract, with Tether thinking it could be increased in the future, while UTE considered it a hard cap.

A former contractor told Reuters that the operation sometimes lacked sufficient power for days at a time as electricity demand increased.

Tether representatives reportedly did not show up to sign a revised contract, leading to UTE cutting off power to the sites in July 2025.