Tether’s $120 Million Uruguay Bitcoin Mining Project Collapses

Tether, the issuer of the USDT stablecoin, has expanded beyond its core token business into bitcoin mining. Its $120 million project in Uruguay was part of that diversification, seeking to establish a large-scale mining operation supported by the country’s power resources. The collapse underscores how mining economics depend on reliable, long-term electricity agreements, with contract terms and power costs often determining whether a facility remains viable.

Tether’s Uruguay bitcoin mining project was terminated after negotiations over a power contract reached an impasse, Reuters reported. Uruguay’s state-owned utility, UTE, cut electricity to the mining facility in July 2025 after Tether representatives failed to attend the signing of a new agreement. The disconnection brought the $120 million venture to an end, turning a dispute over supply terms into the decisive setback for the project.