Tether Provides 610M Dollars in Debt Financing to Bitcoin Mining Giant Northern Data

Crypto News-Tether (USDT), the issuer of the stablecoin, has amplified its commitment to Bitcoin mining by providing a substantial debt facility to the German-based BTC mining company, Northern Data AG.

On November 2, Northern Data AG announced that it has secured a debt financing facility of 575 million euros (equivalent to $610 million) from Tether, which is designated to fuel further investments across its various business lines.

Tether Provides 610M Dollars in Debt Financing to Bitcoin Mining Giant Northern Data

This debt capital has a specific purpose, which is to empower the Northern Data Group to make strategic investments in its three primary areas of operation: Taiga Cloud, the artificial intelligence cloud service provider; Ardent Data Centers, focusing on data center infrastructure; and Peak Mining, the company’s mining division.

The primary focus of these investments lies in the acquisition of additional hardware and the expansion of Bitcoin mining operations, with a particular emphasis on liquid-cooling mining technology. The debt facility, offered under standard market conditions, is unsecured and comes with a term that extends until January 1, 2030.

Tether’s Chief Technology Officer and CEO, Paolo Ardoino, clarified that the loan facility is intended to be gradually utilized throughout 2024. He emphasized that it will be funded using the company’s profits and will not be part of Tether’s stablecoin consolidated reserves. It will be managed through a separate investment vehicle under the Tether Group to ensure proper segregation.