2023-09-21 15:05:17 ET
Tether , the company behind the USDT stablecoin, has made a strategic investment in Northern Data Group, a German crypto mining firm.
While the exact investment amount remains undisclosed, the move is a significant endorsement of emerging technologies, particularly in the realms of artificial intelligence (AI) , peer-to-peer (P2P) communications, and data storage solutions.
Tether committed to fostering technological innovation
In a blog post dated September 21, Tether expressed its commitment to fostering technological innovation.
The strategic investment in Northern Data Group through its subsidiary, Damoon, underscores the company’s dedication to supporting cutting-edge technologies. The implications of this investment point toward potential collaborations in AI, P2P communications, and data storage solutions. It’s a strategic alignment that hints at a broader vision for the future.
It’s worth noting that Forbes previously reported a substantial $420-million investment, a claim that Tether has refuted. However, Tether has not provided the precise figure. Similarly, Northern Data Group has remained tight-lipped about the specifics of this strategic partnership.
Acquisition of Damoon
The investment in Northern Data Group is closely tied to the acquisition of Damoon, a company now under the Northern Data umbrella.
In the arrangement, Tether has agreed to finance Damoon, ensuring that it has the necessary resources to acquire the latest-generation GPU hardware. Paolo Ardoino, Tether’s Chief Technology Officer, characterizes the move as a bold foray into uncharted technological territories, emphasizing the significance of the venture.
Tether has taken care to clarify that this investment is entirely separate from its reserves and will not have any impact on customer funds. This clarification stems from previous legal actions in the United States, where Tether faced allegations of lacking full transparency regarding its reserves. These legal challenges resulted in significant fines and mandates to provide comprehensive reports on the backing of its USDT stablecoin.
Tether, as the largest stablecoin issuer by market capitalization, has been active on the global stage, making various strategic investments and partnerships. These endeavours range from collaborations with KriptonMarket in Argentina to signing a memorandum of understanding to aid in the development of peer-to-peer infrastructure with the government of Georgia.
Additionally, Paolo Ardoino revealed that some of Tether’s mining operations are based in Latin America. While it remains uncertain whether these operations will extend to Germany following the Northern Data partnership, the Northern Data Group investment represents a compelling milestone in Tether’s ongoing expansion and technological exploration.
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