Tether's Support for Bitcoin Mining
The stablecoin issuer, Tether (USDT), is strengthening its involvement in Bitcoin mining by providing a significant debt financing facility to the German Bitcoin mining company, Northern Data AG.
Tether's Investment in Northern Data
In a recent announcement on November 2, it was revealed that Northern Data AG secured a substantial 575 million euro ($610 million) debt financing facility from Tether. This financing is intended to fuel further developments across Northern Data's diverse business segments, which include artificial intelligence cloud services (Taiga Cloud), data centers (Ardent Data Centers), and their mining operations (Peak Mining).
The investments supported by this debt facility will primarily involve the acquisition of additional hardware and the expansion of Bitcoin mining activities, emphasizing the use of liquid-cooling mining technology.
Terms and Conditions
The debt facility is described as unsecured, adhering to standard market conditions, and is set to mature on January 1, 2030, according to the announcement.
Tether's Ongoing Interest
This debt financing follows Tether's earlier investment in Northern Data in September 2023. Tether's expansion into Bitcoin mining reflects its commitment to supporting various AI initiatives while ensuring that customer funds remain unaffected.
Tether's Financial Position
Notably, Tether's Q2 attestation by accounting firm BDO revealed that the stablecoin issuer had bolstered its excess reserves by $850 million, reaching a total of $3.3 billion. Additionally, despite efforts to eliminate stablecoin loans, Tether reported a surge in these loans in September 2023.