Tether’s Uruguay Mining Exit Shows the Risk of Unsecured Power
Tether has abandoned a Bitcoin mining buildout in Uruguay that a former contractor estimated cost roughly $120M, after a dispute with state-owned utility Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE).
The dispute is over how much electricity the stablecoin issuer’s contract actually guaranteed, according to a Reuters investigation reviewed by Kontan.
This is not simply a stalled construction project. It is a case study in how a single clause in a power supply contract and a change of government can unwind a multi-year industrial commitment, even for a company controlling roughly $183Bn in stablecoin issuance.
TETHER’S $120 MILLION URUGUAY BITCOIN MINING BET UNRAVELS
Tether abandoned two Bitcoin mining sites in Uruguay after a dispute with state utility UTE over how much electricity the operations could access, according to Reuters.
A former contractor estimated Tether invested… pic.twitter.com/0VUMuY2uUL
- Bitcoin News (@BitcoinNewsCom) August 21, 2026
The Tether Bitcoin Mining Contract Dispute in Uruguay that Led to the Operation Being Canned
Tether announced plans in 2023 to build two mining sites in Uruguay’s Florida Department, framing the country as an ideal location given its renewable energy supply, grid reliability, political stability, and favorable tax treatment.
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