Tether Execs Acquire Northern Data’s Miner Arm in Major Industry Move

Northern Data Sells Bitcoin Mining Business to Tether-Linked Entities in Complex Deal

In a recent development, Northern Data, a data center operator backed by Tether, has divested its Bitcoin mining division, Peak Mining, selling it to three companies associated with Tether executives. The transaction, valued at up to $200 million, marks a significant step in the company’s strategic reorganization amid ongoing investigations and regulatory scrutiny.

The sale was finalized with Highland Group Mining, Appalachian Energy, and an Alberta-based firm, reportedly managed by Tether co-founder Giancarlo Devasini and CEO Paolo Ardoino. The Financial Times reports that filings indicate Devasini and Ardoino serve as directors for Highland Group, while Devasini is the sole director for the Alberta company. The ownership structure remains ambiguous regarding Appalachian Energy, based in Delaware.

Northern Data initially announced plans to sell Peak Mining in November, withholding disclosure of the buyers due to German regulatory requirements. This sale coincided with Tether’s investment activities in the broader cryptocurrency and technology sectors. Interestingly, the deal occurred just prior to Tether’s nearly 50% stake in video-sharing platform Rumble publicly agreeing to acquire Northern Data.

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

History of the Deal and Regulatory Challenges

This transaction marks the second attempt to sell Peak Mining to a Devasini-controlled entity. Previously, in August, Northern Data announced a non-binding agreement to sell the division to Elektron Energy for €235 million, a deal that ultimately fell through amid whistleblower allegations.

Northern Data is under investigation by European prosecutors for suspected tax fraud, with raids on its offices taking place in September. The company’s financial ties to Tether are extensive, with the stablecoin issuer reportedly holding a €610 million ($715 million) loan from Northern Data. As part of the recent deal, Tether will receive half of the loan’s balance in Rumble stock, while the remaining amount will be converted into a new loan secured against Northern Data assets.

Broadening Tether’s Horizons

Dominating the stablecoin market with a 60% share and approximately $187 billion in circulating USDT, Tether continues to diversify into sectors beyond digital assets. Its recent activities include investments in AI, video-sharing platforms, and an attempt to acquire Juventus Football Club for $1.1 billion—an effort that was rejected by the club’s owners.

As Tether expands its portfolio, its strategic moves indicate a broader ambition to integrate blockchain technology with mainstream industries, amid ongoing questions about regulatory compliance and financial transparency.

This article was originally published as Tether Execs Acquire Northern Data’s Miner Arm in Major Industry Move on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.