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08/24/2026

Tether’s $120M Uruguay Bitcoin Mining Project Collapses After Power Dispute

What happened: Tether abandoned its Uruguay bitcoin mining operations after investing approximately $120 million, following a contract dispute with state utility UTE.

Tether’s $120M Uruguay Bitcoin Mining Project Collapses After Power Dispute

What happened: Tether abandoned its Uruguay bitcoin mining operations after investing approximately $120 million, following a contract dispute with state utility UTE. UTE cut power to Tether’s sites on July 25, 2025, after the company failed to sign a revised contract and left bills unpaid for two months. The closure was formally reported to labor authorities in November 2025, and debts were settled by December. The dispute intensified after a new government took office in March 2025, installing UTE leadership less favorable to Tether’s expansion plans.

Why it matters: The collapse of Tether’s mining venture highlights the operational and political risks of large-scale crypto mining, especially in jurisdictions with shifting regulatory and political climates. Despite CEO Paolo Ardoino’s claim that Tether would become the world’s largest bitcoin miner by year-end 2025, the Uruguay project’s failure underscores the challenges of securing reliable, cost-effective energy for mining. The episode also raises questions about the sustainability of Tether’s broader $2 billion mining and energy portfolio.

Source: The Block