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Tether Funds German-based Crypto Miner Northern Data Group
Unveiling a strategic move into advanced technology, Tether, the company behind prominent stablecoin USDT, has invested an undisclosed sum in Northern Data Group, a German crypto miner in a bid to bolster initiatives in artificial intelligence (AI).
Announced via a blog post on September 21, Tether indicated that the group firm Damoon facilitated the investment in Northern Data. The intention, according to the post, was to express “a commitment to fostering technological innovation," portending partnerships revolving around AI, peer-to-peer communication, and advanced data storage solutions. In response to a report by Forbes claiming a $420 million investment, Tether refuted the figure without disclosing the actual amount. A request for comment sent to Northern Data elicited no response before the time of this article's publication.
Acquisition of Damoon by Northern Data Group
During July, Northern Data divulged an agreement with Tether to take over Damoon. As part of the agreement, Tether pledged to infuse Damoon with the necessary capital for "acquiring state-of-the-art GPU hardware" before finalizing the acquisition. Describing this investment as venturing into “new technological territories”, Paolo Ardoino, Tether’s Chief Technology Officer, expressed optimism in the deal.
Tether Ensures Customer's Funds Safety
Pertaining to concerns regarding the liquidity of the firm's reserves dropped, Tether reassured that the investment emanated from a separate fund pools, thus "being independent of [its] reserves" and would not interfere with customer’s funds. Previously accused of non-disclosure regarding its reserves, Tether was subjected to legal action in the US, resulting in significant penalty charges and mandated transparency reports on reserve backing USDT.
Tether's Global Investments and Operations
As the prime stablecoin issuer with a remarkable market value exceeding $83 billion, Tether has financed various international investment ventures, from alliances with Argentina's KriptonMarket to entering a memorandum of understanding with the Georgian government to develop peer-to-peer infrastructure. In August, Ardoino disclosed a portion of the firm's mining operations being located in Latin America, leaving speculation about possible German expansion following the Northern Data deal.
