Tether’s Bitcoin Mining in Uruguay Faces a Shocking Halt: What Went Wrong?

by

Well, well, well, it looks like Tether’s grand plans to expand Bitcoin mining in Uruguay have hit a big ol’ brick wall. Who knew that power cuts would be the plot twist? 😜

It all started when the national electricity provider, UTE, decided to cut off the power supply to Tether’s local partner, Microfin, back in July. Why, you ask? Oh, just a teensy little thing called a $5 million unpaid bill. No biggie, right? 🤑

Tether’s LATAM Bitcoin Mining Dream Derailed by Power Drama

Now, if you’re wondering how this all started, let’s rewind a bit. Tether, the same folks behind USDT stablecoin, made a dazzling entrance into Uruguay in 2023, promising Bitcoin mining powered by the wind and the water-because nothing screams “sustainable” like renewable energy, am I right? 🌬️💧

The idea was solid-Uruguay’s got more wind and hydro than a hiker’s backpack has granola. Tether and Microfin teamed up to build shiny new mining facilities and grab some sweet long-term electricity deals. Sounds like a match made in crypto heaven. 😇

But then, the wheels of fortune began to turn a little too fast. UTE started demanding hefty deposits for energy contracts, while Microfin got all fidgety about adjusting tariffs. You know how it goes-contracts, numbers, fine print. People started to squabble. 🤷‍♂️

After a whole lot of back-and-forth, they signed a memorandum of understanding in June, but the money didn’t materialize, and-bam!-the lights went out. No power, no mining. It’s almost like they were surprised? 🤡

Tether had some rather grandiose plans for this venture, with hopes of controlling around 1% of the global Bitcoin network. Hundreds of millions of dollars were set aside for South American mining projects, including one in Paraguay. Uruguay was supposed to be the shining jewel of the plan, but now it’s more like a rusty cog in the machine. 🏗️

And here’s the kicker-Tether wants you to know that their stablecoin reserves are totally separate from all of this. They’ve got their fingers in many pies, hoping to use Bitcoin mining as a diversification strategy. Because, you know, who wouldn’t want to throw some energy-intensive ventures into the mix of a digital currency empire? 💸

Earlier this year, they even picked up a piece of the Latin American agribusiness pie, aiming to link stablecoin use to commodity trade. Talk about thinking big! 🌽🚜

But with this power struggle in Uruguay, the whole “sustainable mining” dream is looking a bit… questionable. Paraguay and Texas are like, “We’ve got cheaper electricity!” while Uruguay’s grid is playing hardball with its guarantees. Maybe they should’ve checked the fine print? 🤔

So, for now, Tether’s back to the drawing board with UTE, but who knows when-if ever-the lights will come back on. Will they scale back or just give up on Uruguay entirely? Stay tuned. 📅

Bottom line: This whole mess shows the risks of tying stablecoins to high-stakes mining projects. Not all that glitters is green energy, folks. 💡

Read More

2025-09-20 01:48