Tether-Backed Northern Data Sells Bitcoin Mining Subsidiary to Tether Affiliates

Northern Data, a majority-owned entity of Tether, has sold its Bitcoin mining segment, Peak Mining, to businesses directed by Tether executives, as reported by the Financial Times.

The sale amount could reach up to $200 million, with Highland Group Mining, Appalachian Energy, and an Alberta-based company connected to Tether’s Giancarlo Devasini and Paolo Ardoino being the buyers. The financial outlet reveals that Highland Group’s management includes Devasini and Ardoino, with Devasini also being the director of the Alberta company, while the leadership of the Delaware-based Appalachian Energy is not yet publicly disclosed.

Although Northern Data disclosed the Peak Mining sale in November, the company did not divulge the identities of the buyers as it wasn’t mandated by German authorities.

This transaction occurred shortly before Rumble, a video-sharing platform where Tether has a nearly 50% stake, consented to purchase Northern Data.

Tether’s complex web of financial ties. Source: The Financial Times

Complicated Financial Connections

This marks the second attempt to sell Peak Mining to a company with Devasini at the helm. The first deal, set for $235 million with Elektron Energy, collapsed due to whistleblower allegations.

Currently, Northern Data is facing scrutiny from European prosecutors over alleged tax fraud, and in September, its offices were searched.

Tether has also entered into a $100 million advertising agreement with Rumble and intends to acquire $150 million worth of GPU services from it as it further engages in Bitcoin mining.

Northern Data is burdened with a €610 million ($715 million) loan from Tether, half of which will be repaid in Rumble stock as part of this acquisition, while the remainder will be settled through a new loan from Tether to Rumble, secured against Northern Data assets.

Tether’s Expansion Beyond Stablecoins

As the dominant player in the stablecoin market with a 60% market share and $187 billion in USDT circulation, Tether is also exploring ventures beyond stablecoins, including Bitcoin mining, AI technologies, video platforms, and sports franchises. Recently, Tether made headlines with a $1.1 billion bid for Italy’s Juventus Football Club, which was subsequently rejected by the club’s management.