Tether Halts $120M Uruguay Mining After Power Dispute

Tether Suspends $120M Uruguay Mine

Tether, the world's largest stablecoin issuer, has paused its Bitcoin mining operations in Uruguay, according to a report confirmed by on-chain and corporate disclosures. The suspension follows a breakdown in negotiations with the state-owned power utility UTE over electricity supply volumes, leading to power being cut at two mining sites as of July. The affected project is valued at approximately $120 million. Tether had invested in the South American mining operation as part of its broader strategy to expand beyond USDT issuance into energy and Bitcoin infrastructure.

Mining OS and MDK Signal Pivot

Despite the operational setback, analysts view the Uruguay exit as a strategic recalibration rather than a retreat from mining. Tether has been building an integrated mining ecosystem, releasing its open-source Mining OS (MOS) in February and the Mining Development Kit (MDK) in April. More recently, it announced plans for modular mining hardware with Canaan and ACME Swisstech. Tether also directs its hashrate to the decentralized mining pool OCEAN and holds a 70% equity stake in renewable energy firm Adecoagro, reflecting a pivot from owning sites toward controlling infrastructure layers.

Power Control Drives New Model

CEO Paolo Ardoino has characterized Tether's mining push as an infrastructure business, emphasizing the importance of network security. The Uruguay dispute highlights how electricity procurement, not just hardware, is a critical bottleneck. By moving into open-source software, modular hardware, and equity-backed energy assets, Tether is reducing dependence on external power contracts while building a vertical stack that supports its Tether ecosystem. On-chain data shows the company's mining strategy is increasingly focused on self-reliance and decentralization.