Tether Backs Northern Data AG with €575 Million for Expansion in Bitcoin Mining Operations
Summary:
Tether, the USDT stablecoin issuer, is backing Northern Data AG with a €575 million ($610 million) debt financing investment for growth across its businesses. The funding, which is aimed at increasing bitcoin mining operations, comes after Tether's stake acquisition in Northern Data. Tether has confirmed that this investment is separate from its reserves and will not affect customer funds.
Tether, the issuer of the stablecoin USDT, is increasing its commitment to Bitcoin mining through a significant debt financing provision for the German Bitcoin mining enterprise, Northern Data AG. As per a statement released on 2nd November, Northern Data AG has locked down a €575 million (approximately $610 million) debt funding from Tether to promote additional investments across its range of services. This debt fund is particularly designed to assist Northern Data Group in augmenting its three business segments: its AI cloud service provider Taiga Cloud, Ardent Data Centers, and Peak Mining, its mining enterprise. The central purpose of these investments is to expand operations in Bitcoin mining by procuring more hardware and employing liquid-cooling mining technology, notes the announcement. As outlined in the declaration, this debt fund is uncollateralized, conforms to standard market conditions and is valid until 1st January 2030. This financial backing follows Tether's equity purchase in Northern Data; in September 2023, the issuer of USDT invested an unspecified sum in Northern Data to support AI projects. In a statement, Tether mentioned that this business interest is isolated from its reserves and would not affect client funds. Throughout 2023, Tether has steadily ventured into the domain of Bitcoin mining by setting up its own operations and introducing exclusive mining software. In its Q2 attestation audited by BDO, Tether revealed that its surplus reserves had grown by $850 million, consequently making its total excess reserves tally $3.3 billion. September 2023 also marked a surge in its stablecoin loans, despite the company's efforts to minimize such loans to zero the previous year.
Published At
11/2/2023 9:22:45 AM
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