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The official announcement stated, “Today, Northern Data AG entered into a loan agreement with a company of the Tether Group, under which it secured a EUR 575 million debt financing facility. It will enable Northern Data Group to make further investments across its three business lines Taiga Cloud, Ardent Data Centers and Peak Mining.”
Stablecoin issuer Tether (USDT) has offered $610M worth of debt facility to Northern Data, a Bitcoin (BTC) mining firm.
Northern Data, Europe's largest Bitcoin mining company, announced that it has received 575 million euros in debt financing from Tether. The focus of the investment will be to purchase additional advanced hardware to expand artificial intelligence cloud business.…
— Wu Blockchain (@WuBlockchain) November 2, 2023
As per the announcement, the $610M debt financing facility is "unsecured, at standard market conditions and has a term until 1 January 2030." Tether’s capital infusion will allow Northern Data to acquire liquid-cooling mining hardware for Peak Mining, its Bitcoin mining unit.
Northern Data will use the loan facility to expand the number of data centers owned by its subsidiary Ardent Data Centers throughout Europe. The firm also intends to invest a portion of this sum to improve the generative AI cloud services of its Taiga Cloud business unit.
Earlier in September, Tether acquired a stake in Northern Data to leverage the AI, data storage, and peer-to-peer communication solutions developed by the German firm. Although Tether refused to disclose the invested sum, the issuer of USDT confirmed that the amount was separate from its reserves.