Tether's Bet on Bitcoin Mining
Tether, the issuer of the USDT stablecoin, is doubling down on Bitcoin mining. The company has announced a major debt facility of 575 million euros ($610 million) for German-based BTC mining company Northern Data AG.
Investing in Business Expansion
The debt capital raised by Northern Data AG will be used to drive further investments across its various business lines. This includes its artificial intelligence cloud service provider Taiga Cloud, Ardent Data Centers, and Peak Mining, the company's mining business.
Scaling Bitcoin Mining Operations
The focus of the investments will be on acquiring additional hardware and scaling Bitcoin mining operations. The company plans to utilize liquid-cooling mining technology to enhance efficiency and productivity.
Unsecured Debt Facility
The debt facility, which has a term until Jan. 1, 2030, is unsecured and offered at standard market conditions.
Tether's Involvement in Northern Data
This debt financing comes after Tether acquired a stake in Northern Data. In September 2023, the USDT issuer made an undisclosed investment to support the company's AI initiatives. Tether has been actively entering the Bitcoin mining space, launching its own mining operations and introducing proprietary mining software.
Boosting Reserves and Stablecoin Loans
Tether has been increasing its excess reserves, with a Q2 attestation from accounting firm BDO revealing a rise of $850 million. This brings Tether's total excess reserves to $3.3 billion. Despite efforts to reduce stablecoin loans to zero last year, the company reported a surge in stablecoin loans in September 2023.
