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CoinBatmi feature visual — market neutral — Tether’s $120 million Uruguay bitcoin mining project collapsed over a power contract dispute: Reuter
Tether's $120 million bitcoin mining project in Uruguay went offline in July 2025 after the state power utility UTE cut electricity when company representatives failed to attend the signing of a revised supply contract.
The mine, built to tap Uruguay's 98% renewable grid, was meant to showcase Tether's commitment to sustainable hashpower. Instead, the project became a case study in how quickly infrastructure agreements can unravel. UTE moved to terminate supply after Tether's team did not appear for the contract renewal, leaving specialized hardware stranded.
Bitcoin traded at $77,282 on August 23, 2026, up 22.7% over the prior seven days, per CoinGecko. The rally shows the opportunity cost of the shutdown: every terahash idled in Uruguay is a terahash not earning at current prices.
Contract terms and termination
The dispute centered on a revised power purchase agreement that UTE required for continued supply. The new terms addressed grid stability clauses and peak-demand curtailment rights, per the utility's public filing. Tether's absence at the signing triggered an automatic termination clause, and UTE disconnected the substation within days.
No public filing discloses the exact megawatt capacity or the hardware deployment. Industry estimates for a $120 million greenfield build in 2024, 2025 range between 25 and 35 megawatts, depending on equipment vintage and site preparation costs.
Renewable narrative breaks
Uruguay's grid runs on wind, hydro, and solar, giving the project a carbon-intensity profile far below the global mining average. Tether had highlighted the site in sustainability communications, positioning it as proof that stablecoin reserves could fund clean hashpower.
The abrupt loss of that narrative removes a talking point the issuer used to differentiate from peers reliant on fossil-heavy grids in Texas and Kazakhstan.
Bitcoin 7-day price
Metric
Value
Context
Project capital
$120M
Greenfield build, 2024–2025
Grid source
98% renewable
Wind, hydro, solar
Power cutoff
July 2025
Missed contract signing
BTC price (Aug 23, 2026)
$77,282
+22.7% 7d, CoinGecko
Estimated capacity
25–35 MW
Industry range for $120M
Forward watch: Tether's mining strategy
The collapse raises questions about Tether's broader mining strategy. The company has not disclosed whether it will redeploy the capital to another jurisdiction, sell the hardware, or write down the investment. Meanwhile, global hash rate continues to climb, and the next difficulty adjustment will price in every idle machine.
Frequently Asked Questions
+Why did UTE cut power to Tether's mining site?
UTE terminated supply after Tether representatives did not attend the signing of a revised power purchase agreement, triggering an automatic cutoff clause.
+Has Tether announced plans to restart the project elsewhere?
No. As of August 23, 2026, the company has not disclosed a relocation, hardware sale, or write-down for the $120 million investment.
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