How Tether’s bitcoin mining plans in Uruguay unraveled
The project unraveled over a dispute with state utility UTE as Tether’s sites were left abandoned and most staff were laid off.
- Tether abandoned its $120 million Bitcoin mining project in Uruguay's Florida department following a protracted electricity dispute with state utility UTE, ceasing operations and laying off most staff.
- Disagreements began when Tether interpreted its contract as guaranteeing minimum power, while UTE viewed the figures as maximum allocations; a new government taking office in March 2025 compounded tensions.
- After failing to pay electricity bills, Tether saw UTE cut power to the mining sites on July 25, 2026, following the company's refusal to sign a revised memorandum of understanding.
- Northumbria University assistant professor Pete Howson characterized the move as "hypermobile" mining activity that fails to create substantial long-term benefits for host countries like Uruguay.
- Bitcoin mining profitability has declined since the April 2024 "halving" and price volatility, prompting Tether to pivot toward global investments in AI and other high-performance computing sectors.
11 Articles
11 Articles
Tether quits $120M Uruguay Bitcoin mining bet after UTE power clash
Tether has walked away from its Bitcoin mining operation in Uruguay, abandoning two facilities that cost an estimated $120 million after a prolonged tussle with state utility UTE over the power numbers available to the sites. This move ends the USDT issuer’s initial move into South American mining. Power dispute due to unclear contract clauses According to two former Tether contractors and a source from state utility organization UTE cited by Re…
CoinStats - Tether shuts down $120 million Bitcoin mining...
⚡️ Tether halted its $120 million Bitcoin mining venture in Uruguay after a utility dispute. 📉 UTE cut power to Tether’s mining sites citing unpaid bills and failed contract talks. 💰 Tether invested heavily in Uruguay, aiming to expand crypto mining across South America. 🌎 Increased energy costs and falling margins are squeezing profitability in $BTC mining. Continue Reading:Tether shuts down $120 million Bitcoin mining project in Uruguay aft…
Tether Pulls Plug on $120M Bitcoin Mining Venture in Uruguay Following Electricity Conflict
Tether abandons its $120M Uruguay Bitcoin mining operation after electricity supply dispute with UTE forces shutdown of two major facilities. The post Tether Pulls Plug on $120M Bitcoin Mining Venture in Uruguay Following Electricity Conflict appeared first on Blockonomi.
Uruguay seemed to be the perfect place for the cryptocurrency giant Tether to start a bitcoin mining operation. The company, which has spent almost two-thirds of all Stablecoins in circulation, chose this still largely agricultural corner of South America, which in recent years thanks to its reputation for political stability and favorable fiscal [...] The post Bitcoin mining plans of Tether fail in Uruguay first appeared on latinapress news.
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