Tether Makes Undisclosed Investment in German Crypto Miner Northern Data Group
Summary:
Tether, the company behind stablecoin USDT, has made a strategic, undisclosed investment in German-based cryptocurrency miner, Northern Data Group to support their AI initiatives. This investment, distinct from Tether's reserves, signifies Tether's commitment to emerging technologies. Details about the specific amount invested remain unknown. Northern Data previously disclosed an agreement to purchase Tether's subsidiary, Damoon.
Tether, the company responsible for the creation of stablecoin USDT, has financially backed German cryptocurrency miner, Northern Data Group, in an undisclosed investment deal to support their ongoing artificial intelligence (AI) projects. According to a blog post on September 21, the investment, done via Tether's group company Damoon, signifies Tether's commitment to innovative technology enhancement, with AI, peer-to-peer communications, and data storage systems set for potential collaboration. While reports of a $420-million investment from Forbes were denied, the precise investment sum remains unclear. Cointelegraph's attempts at reaching Northern Data for a comment were unsuccessful at the time of publication. This July, Northern Data confirmed an agreement to purchase Damoon from Tether, a transaction in which Tether pledged to pre-fund Damoon with money earmarked for the procurement of cutting-edge GPU hardware. Tether's CTO, Paolo Ardoino, referred to the commitment as venturing into uncharted technological territories.
While emphasising the distinction between its reserves and the investment, Tether assured that client funds would not be affected. Previously, the firm faced legal issues in the United States with claims of opacity concerning its reserves, leading to hefty financial penalties and mandatory USDT's backing reporting. Despite a downscaling announcement in 2022, 2023 saw a surge in Tether stablecoin loans. As the predominant stablecoin publisher with a market capitalisation exceeding $83 billion, Tether's global investments are substantial, ranging from partnerships with KriptonMarket in Argentina to an agreement with the Georgian government to aid in peer-to-peer infrastructure development. Ardoino disclosed in August some of the firm’s mining operations are located in Latin America, but whether this reach may extend to Germany following the Northern Data agreement remains uncertain.
Published At
9/21/2023 6:00:00 PM
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