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Tether’s Bitcoin mining project in Uruguay has stalled due to a power contract dispute, with an estimated investment of up to $120 million.

2026.08.24 06:06:10

According to Reuters, Tether’s bitcoin mining farm project in Uruguay has been shut down due to a power supply contract dispute with local state-owned power company UTE. The project’s investment is estimated at around $120 million. The two sides hold differing views on the contracted power supply volume: Tether regards the figure as a minimum guaranteed supply, while UTE considers it a cap on power delivery. As no new agreement was signed and power fees fell into arrears, UTE cut power to the two mining sites on July 25, 2025. Tether subsequently ended its local operations and laid off most of its staff. The Uruguay project was once seen by Tether as the "first step" in its push into the South American bitcoin mining market. However, Tether continues to expand its regional energy and mining footprint; it previously acquired a 70% stake in renewable energy firm Adecoagro and plans to use its surplus power for bitcoin mining.

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