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

Tether has abandoned its estimated $120 million Bitcoin mining project in Uruguay after a dispute with the country’s state-owned power utility, UTE, over electricity supply terms. The disagreement centered on whether the agreed power limit was fixed or could be increased later, a conflict that eventually led to power being cut off at both mining sites.

Political Shift Intensified the Dispute

According to sources, tensions grew sharper after a new left-leaning government took office in 2025 and appointed new leadership at UTE, which took a firmer stance during negotiations. Tether’s local unit later stopped paying its electricity bills and informed the utility it intended to end the contract, resulting in a full power cutoff and eventual layoffs.

Part of a Larger Regional Strategy

Uruguay was initially seen as Tether’s entry point into South America’s mining industry, with plans to expand into neighboring countries. Despite this setback, the company continues investing in renewable energy and mining infrastructure elsewhere in the region.