Tether issues $610M debt financing to Bitcoin miner Northern Data
The Tether ( USDT ) stablecoin issuer is raising the bet on Bitcoin ( BTC ) mining by issuing a major debt facility to German-based BTC mining company Northern Data AG.
Northern Data AG has secured a 575-million-euro ($610 million) debt financing facility from Tether to drive further investments across its businesses, according to an announcement on Nov. 2.
The debt capital specifically aims to enable Northern Data Group to invest in its three business lines, including its artificial intelligence cloud service provider Taiga Cloud, Ardent Data Centers and Peak Mining, the company’s mining business.
The focus of these investments will be on the acquisition of additional hardware and scaling Bitcoin mining operations with liquid-cooling mining technology, the announcement notes.
According to the announcement, the debt facility is unsecured, at standard market conditions, and has a term until Jan. 1, 2030.
Related: No concerns over Bitcoin halving supply shock, says Bitvavo CEO
The debt financing comes after Tether acquired a stake in Northern Data. In September 2023, the USDT issuer invested an undisclosed amount in Northern Data in a move aimed at backing AI initiatives. Tether claimed the investment was separate from its reserves and would not impact customer funds. Tether has been actively moving into Bitcoin mining operations in 2023, launching its own mining operations and introducing proprietary mining software .
According to Tether’s Q2 attestation from accounting firm BDO, the stablecoin company increased its excess reserves by $850 million , bringing total excess reserves to $3.3 billion. In September 2023, it was also reported that its stablecoin loans surged despite the company working to cut such loans to zero last year.
Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
FTX plans to start reimbursing creditors by January 2025
1MCHEEMSUSDT now launched for futures trading and trading bots
Bitget has launched 1MCHEEMSUSDT for futures trading with a maximum leverage of 20, along with support for futures trading bots, on November 25, 2024 (UTC+8). Welcome to try futures trading via our official website (www.bitget.com) or Bitget APP. 1MCHEEMSUSDT-M perpetual futures: Parameters Details
Token listing: Instantly buy/sell BTC with EUR & BRL via cash conversion!
Bitget users can now instantly buy or sell BTC with EUR or BRL balances via cash conversion! Buy/Sell Crypto Tips: Enjoy a transaction fee rebate in USDT on your first cash conversion transaction! Additional perks >>> Flash Monday: Buy crypto with a credit/debit card for zero fees >>> Flash Thursda