Tether Provides $610 Million In Debt Financing.

The stablecoin issuer had previously invested in the artificial intelligence company Northern Data, but the amount of the investment was not disclosed.

In September 2023, Tether made an undisclosed investment in the Bitcoin mining company, Northern Data, with the goal of supporting artificial intelligence initiatives. Now, Tether has provided Northern Data with a $610 million loan for further financial support.

Tether's influence on Bitcoin continues to grow. As a contribution to this effect, Tether, the stablecoin issuer, extended a substantial loan to the Germany-based BTC mining company, Northern Data AG.

On November 2nd, Northern Data AG announced that it had received a €575 million (equivalent to $610 million) loan from Tether to further invest in its operations.

This loan aims to fuel Northern Data Group's three business segments, which include an artificial intelligence cloud service provider, Taiga Cloud, Ardent Data Centers, and the company's mining business, Peak Mining. The primary focus of these investments is the acquisition of additional hardware materials and the scaling of Bitcoin mining operations with liquid cooling technology.

According to the announcement, this debt financing is unsecured, under standard market conditions, and comes with a term extending until January 1, 2030.

The loan follows Tether's purchase of shares in Northern Data, made after Tether's investment in September 2023 to support artificial intelligence initiatives. The exact amount of Tether's investment has not been disclosed. Tether asserts that this investment is separate from its reserves and will not impact customer funds. In 2023, the company also entered the Bitcoin mining sector by launching its own mining operations and introducing proprietary mining software.

According to BDO, Tether's accounting firm, the company increased its additional reserves by $850 million, raising the total additional reserves to $3.3 billion. Despite efforts to eliminate such loans to zero last year, there were reports that stablecoin loans increased in September 2023.