Tether’s Bitcoin Mining Push in Uruguay Unraveled Over an Energy Dispute

Tether, the company behind the world’s largest stablecoin, spent roughly $120 million on two bitcoin mining sites in Uruguay that were ultimately abandoned after a dispute with the state utility over electricity supply, a Reuters review of documents and interviews has found.

A “perfect platform” that soured In May 2023, Tether announced it would launch bitcoin mining operations in Uruguay, calling the country the “perfect platform” for its abundant renewable energy, without disclosing an investment value.

It set up two sites in the rural department of Florida, spending roughly $60 million on each, according to a former Tether contractor.

The project was intended as a “first step” for Tether’s mining push across South America, serving as a testing ground before the company moved into bigger markets such as Brazil, Paraguay and Argentina. Tether has since announced mining investments in Brazil.