German Data Center Operator Northern Data Group Secures €575 Million Debt Financing Facility from Tether Group
German data center operator, Northern Data Group, has obtained a debt financing facility of up to €575 million ($610 million) from Tether Group. The funds will be used to expand the company’s Bitcoin mining, artificial intelligence (AI), and data center operations. The facility is unsecured and has a term until January 1, 2030.
Northern Data CEO Aroosh Thillainathan expressed excitement about the opportunities this debt facility will bring to the company’s subsidiaries, including Taiga Cloud, Ardent Data Centers, and Peak Mining. The financing will be used to scale Peak Mining’s Bitcoin mining operations using MicroBT liquid-cooling mining technology. Additionally, it will enable the acquisition of advanced Nvidia AI hardware for Taiga Cloud’s generative AI cloud services. The funding will also contribute to the expansion of Ardent Data Centers.
Tether Group Provides Support for Northern Data Group
Tether Group incoming CEO Paolo Ardoino expressed pride in supporting Northern Data Group in providing customers with access to energy-efficient high-performance computing infrastructure. The loan facility, which is capped at €575 million, will be drawn over the next year. It will not be part of Tether’s stablecoin consolidated reserves and will be covered using Northern Data’s profits. Ardoino stated that a separate investment vehicle within Tether Group will facilitate the transaction to ensure segregation.
Ardoino further explained that Tether has been achieving an average of approximately €1 billion per quarter in net operating results. These profits have been retained within their reserves, allowing them to overcollateralize their stablecoins by as much as 104%. A portion of these profits will be strategically reinvested in data, energy, and P2P communications infrastructure.
Tether’s Strategic Investment in Northern Data
Before securing the debt financing facility, Tether made a strategic investment in Northern Data in September. The investment aimed to facilitate collaboration on AI, communication, and data storage initiatives. Tether emphasized its commitment to supporting emerging technology through this undisclosed investment.
Hot Take: Northern Data Group Secures €575 Million Debt Financing Facility from Tether Group for Expansion
German data center operator Northern Data Group has secured a significant debt financing facility of up to €575 million from stablecoin issuer Tether Group. This funding will fuel the expansion of the company’s Bitcoin mining, AI, and data center operations. With the support of this facility, Northern Data aims to capitalize on market opportunities and drive progress in various sectors. The financing will be used to scale Bitcoin mining operations, acquire advanced AI hardware, and expand data center portfolios. Tether Group’s strategic investment demonstrates its commitment to emerging technology and collaboration with Northern Data. This partnership is set to strengthen both companies’ positions in the rapidly evolving crypto industry.
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