Tether, the company responsible for the stablecoin USDT, recently made a confidential investment in the German crypto mining firm, Northern Data Group. This investment aims to boost endeavors in the field of artificial intelligence (AI).
According to a blog post from September 21, Tether explained that this strategic funding into Northern Data, channeled via its subsidiary Damoon, reinforces their commitment to cutting-edge technology. The collaboration might encompass areas such as AI, peer-to-peer communication, and advanced data storage solutions. Contrary to a claim by Forbes about a $420-million investment, Tether did not confirm the exact figure when approached for clarification. Additionally, when Cointelegraph tried to get a comment from Northern Data, they didn’t get any feedback.
Previously, in July, Northern Data publicized an agreement with Tether concerning the acquisition of Damoon. This deal had Tether pledging to provide the necessary funds for Damoon to purchase state-of-the-art GPU hardware before the acquisition’s finalization. Paolo Ardoino, Tether’s Chief Technology Officer, labeled this investment as a stride towards novel technological domains. It’s essential to note that Tether emphasized that this investment doesn’t tap into its reserves, ensuring no repercussions for customer funds. Previously, the firm encountered legal issues in the U.S. over alleged non-transparency about its reserves, leading to hefty fines and mandates to release reports about USDT’s backing.
Being the dominant stablecoin entity with a market capitalization surpassing $83 billion, Tether has embarked on multiple global investments. Some notable collaborations include teaming up with Kriptonmarket in Argentina and a mutual agreement with the Georgian government to enhance peer-to-peer infrastructure. In recent news from August, Ardoino disclosed some of Tether’s mining activities being situated in Latin America. Whether these operations will extend to Germany post the Northern Data agreement remains uncertain.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up