Northern Data AG has secure a €575 million ($610 million) debt financing facility from Tether to spur new investment in its business, according to a Nov. 2 announcement.
The debt capital is specifically aimed at enabling Northern Data Group to invest in its three business segments, including its artificial intelligence cloud service provider Taiga Cloud, Ardent Data Centers and Peak Mining, the mining business of the Company.
These investments will focus on acquiring additional hardware and scaling Bitcoin mining operations with liquid-cooled mining technology, the announcement said.
According to the announcement, the debt facility is unsecured, at standard market conditions, and has a duration until January 1, 2030.
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 an effort to support AI initiatives. Tether claimed the investment was separate from its reserves and would not impact customer funds. Tether actively embarked on Bitcoin mining operations in 2023, start your own mining operations And introduction of proprietary mining software.
According to Tether’s second quarter attestation from accounting firm BDO, the stablecoin company increased its excess reserves by $850 million, bringing the total excess reserves to $3.3 billion. In September 2023, it was also reported that its stable loans had increased despite the company working to reduce these loans to zero last year.