Tether’s Mining Exit Shows Green Power Is Not Enough

TL;DR

• Reuters reported that Tether abandoned two Uruguay mining sites after a dispute with state utility UTE.
• A former contractor put spending near $120 million, a figure Tether has not confirmed.
• Tether’s 2023 announcement praised Uruguay’s renewable generation and reliable grid but did not disclose its power-contract terms.
• For mining, generation sources matter less than price, contracted capacity and the right to expand.
• The Uruguay episode is a useful test for every future “green Bitcoin mining” announcement.

Bitcoin miners can relocate machines. They cannot relocate a grid connection, a power contract or the local politics around a state-owned utility.

That is the lesson from Tether’s reported mining expansion in Uruguay. Reuters found that two sites were abandoned after a dispute with state utility UTE over electricity supply. A former contractor estimated that Tether invested around $60 million in each site, or roughly $120 million altogether. Tether did not answer Reuters’ questions, so neither the investment estimate nor its explanation of the dispute has been confirmed by the company.

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