Tether, the issuer of USDT, the world’s largest stablecoin by market capitalization, entered into a 575 million euro (US$610 million) loan agreement with Northern Data AG, a Bitcoin mining company based in Germany.
See related article: Tether freezes 32 addresses related to terrorism in Israel and Ukraine
Fast Facts
- The US$610 million debt financing facility from Tether will be used to drive investments across the firm’s three business lines, namely artificial intelligence firm Taiga Cloud, Ardent Data Centers and Peak Mining, the company’s Bitcoin mining subsidiary.
- The funds will also be used to acquire hardware for the Taiga Cloud business to expand its offerings as a generative artificial intelligence cloud service provider in Europe, Northern Data announced on Thursday.
- The company also plans to use the investment to further scale its Bitcoin mining operations through its mining subsidiary, Peak Mining.
- The unsecured debt facility’s term ends on Jan. 1, 2030.
- Tether acquired an undisclosed stake in Northern Data in September, as part of the stablecoin issuer’s move towards artificial intelligence.
- On Tuesday, Tether reported US$3.2 billion of excess reserves backing its stablecoins in its third quarter attestation. The stablecoin issuer claimed to have US$86.4 billion in reserves against US$83.2 billion in liabilities.
- Tether’s USDT is the world’s largest stablecoin with a market capitalization of US$84.9 billion, according to CoinMarketCap data.
See related article: Tether appoints Paolo Ardoino as new CEO
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- Source: https://forkast.news/tether-udebt-financing-facility-german-bitcoin-miner/
