$120M Bitcoin Mining Project Stalled: Tether's Uruguay Mining Facility Halts Operations Amid Power Contract Dispute

Odaily News – Tether's bitcoin mining project in Uruguay, with an estimated investment of approximately $120 million, has stalled. The two parties hold differing interpretations of the contracted power supply volume: Tether views the figure as a minimum guaranteed supply, while Uruguay's state-owned power utility, UTE, regards it as a supply cap. As a new agreement was not signed and electricity bills fell into arrears, UTE cut off power to the two mining sites on July 25, 2025, prompting Tether to wind down its local operations and lay off most of its employees. Tether had previously positioned the project as its first step into the South American bitcoin mining market. The company continues to expand its regional energy and mining footprint, having acquired a 70% stake in renewable energy firm Adecoagro, with plans to utilize its surplus electricity for bitcoin mining.