Tether (USDT) is increasing its support of Bitcoin mining. This action comes from a major debt facility for the German BTC mining organization, Northern Data AG.
With the assistance of Tether, Northern Data AG has secured a 575 million euro ($610 million) debt financing facility. The announcement was made on Nov. 2. This facility aims to fuel additional investments for the company.
This financial boost will help Northern Data Group in several ways. For instance, it should drive growth in its three businesses: Taiga Cloud, their artificial intelligence cloud service provider, Ardent Data Centers, and Peak Mining, their business focused on mining.
As per the announcement, the primary objectives of these expenses include the expansion of Bitcoin mining operations through the utilization of liquid-cooling mining technology and the acquisition of additional hardware.
Tether Separate Investment In Northern Data: No Impact On Client Funds
Moreover, the statement clarifies that the debt facility is not backed by collateral, contingent on typical market conditions, and has a term of one year, concluding on Jan. 1, 2030.
Tether’s debt funding came after gaining a share in Northern Data. In September 2023, the USDT issuer put an unknown amount of money into Northern Data, aiming to back AI projects.
Tether clarified this investment was separate from its reserves and would not impact client money. During 2023, Tether dived deeply into Bitcoin mining, setting up their own mining activities and creating its special mining software.
However, based on Tether’s Q2 attestation by the accounting firm BDO, the stablecoin firm raised its surplus reserves by $850 million, resulting in $3.3 billion in extra funds.
In September 2023, it was also reported that Tether’s stablecoin loans had risen despite the company’s efforts to reduce such loans to zero the previous year.
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