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08/24/2026

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

What happened: Tether’s $120M bitcoin mining venture in Uruguay, launched in 2023, was shuttered after state utility UTE cut power in July 2025.

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

What happened: Tether’s $120M bitcoin mining venture in Uruguay, launched in 2023, was shuttered after state utility UTE cut power in July 2025. The dispute centered on contract terms: Tether viewed the power agreement as a minimum supply, while UTE enforced it as a hard cap, leading to operational disruptions. Tether’s local entity stopped paying bills by mid-2025, and the company laid off 30 of 38 employees. Though Tether had planned a $500M investment, only about $100M was deployed before the shutdown.

Why it matters: The collapse highlights the geopolitical and operational risks of large-scale crypto mining, especially in emerging markets. Tether’s ambitions to become the world’s largest bitcoin miner were derailed by regulatory friction and infrastructure constraints, raising questions about the scalability and sustainability of such projects. The episode also underscores the importance of clear contractual frameworks and local partnerships for crypto infrastructure ventures.

Source: The Block