Tether’s Uruguay Bitcoin Mining Project Halted Due to Power Contract Dispute

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Tether’s project announcement for its Bitcoin mining operation in Uruguay has been put on hold after the state-owned utility UTE cut power to two sites. The $120 million project encountered a dispute over supply volumes and unpaid bills, resulting in a suspension on July 25. Tether has since shut down its local operations and laid off most staff. Despite this setback, the company continues to expand its mining and energy initiatives. Earlier this year, Tether acquired a 70% stake in Adecoagro, a renewable energy company, and plans to use excess power for Bitcoin mining. The project funding update underscores ongoing efforts to scale operations across the region.

ChainThink reports that, on August 24, according to Reuters, Tether’s bitcoin mining project in Uruguay has been halted due to a dispute over an electricity supply contract with the local state-owned utility company UTE, with an estimated investment of $120 million.

The two parties disagree on the contracted power supply volume. Tether considers the amount to be a minimum guaranteed supply, while UTE views it as a supply cap. Due to the failure to sign the new agreement and outstanding electricity payments, UTE cut off power to both mining sites on July 25.

Tether subsequently shut down its local operations and laid off most of its staff. The mining project had been viewed by Tether as the first step into South America’s Bitcoin mining market.

However, Tether continues to expand its regional energy and mining operations, having previously acquired a 70% stake in the renewable energy company Adecoagro and planning to use its excess electricity for Bitcoin mining.

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