Tether · Bitcoin · South Korea · The Block
Tether’s $120 million Uruguay bitcoin mining project collapsed over a power contract dispute: Reuters
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Tether abandoned an estimated $120 million Bitcoin (BTC) mining project in Uruguay, seen as a first step into the wider South American market, following a contractual dispute between the stablecoin issuer and state-owned power utility UTE, according to a recent report from Reuters.
Key facts
- Tether abandoned an estimated $120 million Bitcoin (BTC) mining project in Uruguay, seen as a first step into the wider South American market, following a contractual dispute between the stablecoin
- With the revised agreement unsigned and the bills unpaid, UTE cut power to the sites on July 25, 2025
- In June 2025, CEO Paolo Ardoino told The Block's Big Brain podcast that the company would become the "biggest bitcoin miner out there" by the end of the year
- Tether's USDT has around $183 billion in circulation, continuing to lead the global stablecoin market
Summary
Tether and UTE disagreed on how much power the two mining sites were entitled to under the contract: Tether thought an agreed-upon power supply figure was a minimum that could be increased in the future, while UTE thought the figure represented a hard cap, per the report. The two sites, located in Uruguay's Florida department, initially ran well and generated income, according to two former contractors. Though both sides sought to resolve the dispute by signing a revised contract, Tether representatives reportedly did not show up to the signing, according to meeting notes obtained by Reuters.