The company behind the stablecoin Tether (USDT), which has raised concerns among Bitcoin investors, has made an undisclosed investment in Northern Data Group, a German-based cryptocurrency miner that supports artificial intelligence (AI) initiatives.
A Big Step from Tether!
In a blog post dated September 21, Tether stated that the strategic investment in Northern Data through Tether’s group company Damoon aims to demonstrate its commitment to supporting emerging technologies, including artificial intelligence, peer-to-peer communication, and data storage partnerships.
Additionally, the company denied Forbes’ news about a $420 million investment, but did not specify the exact amount when reached for comment. Northern Data announced in July that it had reached an agreement to acquire Damoon with Tether. In this agreement, the stablecoin issuer stated the following in its statements:
Before the completion of the acquisition, Damoon agreed to capitalize with the funds necessary to purchase the latest generation GPU hardware.
Tether Developments Gain Momentum!
Paolo Ardoino, the Chief Technology Officer of Tether, described the investment as a “new venture towards new technological frontiers.” Tether claimed that the investment is separate from its reserves and will not affect customer funds. The company previously faced legal action in the United States after allegations that it was not fully transparent about its reserves. This resulted in millions of dollars in fines and an order to provide reports on the support of USDT.
Additionally, Tether, the largest stablecoin issuer with a market value exceeding $83 billion, has made investments worldwide, from partnering with KriptonMarket in Argentina to assisting in the development of peer-to-peer infrastructure with the Georgian government. In August, Ardoino announced that some of the company’s mining operations were Latin America-based. However, it is unclear whether they will expand to Germany following the agreement with Northern Data.
