Northern Data AG (ETR:NB2), a leading Bitcoin miner based in Frankfurt, has secured a €575 million ($650 million) debt financing deal from Tether Group, the stablecoin issuer, on Thursday. The funding is set to expedite investment in its subsidiaries Taiga Cloud and Ardent Data Centres, and promote liquid-cooling technology in Bitcoin mining through Peak Mining.
Taiga Cloud is expanding as a Generative AI Cloud Service Provider and Ardent Data is growing its data centre portfolio. The company also plans to rent out $10,000 chips to AI startups.
The financing deal follows a collaborative initiative between Northern Data and Tether Group on AI, P2P communications, and data storage solutions. Despite a report by Forbes claiming that Tether holds a 20% stake in Northern Data, the stablecoin issuer refuted the claim.
Paolo Ardoino, Tether's incoming CEO, commended Northern Data's ambitious growth strategy. He stated that Tether's Q3 2023 assurance opinion confirmed the accuracy of its financial reserves that primarily consist of U.S. Treasury Bills, totaling $72.6 billion in direct and indirect exposure.
Tether's Q3 report showed 85.7% reserves in cash or equivalents which could trigger price changes while ensuring Bitcoin liquidity and stability. This was evidenced by its recent marginal gains. The debt financing deal with Northern Data under standard market conditions marks another significant move by Tether in the cryptocurrency sector.
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