Tether's $120M Bitcoin mining operation in Uruguay collapsed after a power contract dispute with local utility UTE cut electricity to mining sites.
Macro & Markets ·
Tether's $120 million bitcoin mining venture in Uruguay ceased operations after a dispute over electricity contracts with the country's state utility, UTE. According to reporting, UTE disconnected power to Tether's mining sites in July 2025 when representatives from the company failed to attend a signing ceremony for a revised power agreement.
The collapse highlights the operational risks of large-scale crypto mining infrastructure dependent on negotiations with state-controlled energy providers. The dispute turned on a contractual obligation—Tether's absence from the signing triggered UTE's decision to cut electricity supply, effectively halting mining activities and stranding the substantial capital invested in the operation.
It remains unclear what specific terms in the revised contract prompted the dispute, whether Tether has sought to restore the power arrangement, or if the project will resume operations. The incident underscores how geopolitical and administrative factors can rapidly derail even well-capitalized mining initiatives in jurisdictions with centralized utility control.