European AI Firm Receives Investment from Tether
Tether makes a strategic move into AI with an investment in Northern Data Group, marking a significant diversification, and highlighting the continuous evolution and resilience of the cryptocurrency industry.
- Tether invests in German Bitcoin miner Northern Data Group aiming for a larger footprint in AI in Europe.
- The partnership marks a significant venture into technological frontiers like AI and peer-to-peer communication.
- Tether’s strategic diversification includes a $420 million investment in Nvidia’s cloud GPUs and acquisition of a 20% stake in Northern Data.
- This initiative follows Tether’s active involvement in sustainable Bitcoin mining projects in Uruguay and El Salvador.
Stablecoin giant Tether has revealed its strategic investment in Northern Data Group, a German-listed Bitcoin miner. Tether aims to support Northern Data in becoming the largest independent AI player in Europe. This move by Tether reflects the growing trend of cryptocurrency firms diversifying into artificial intelligence to explore new technological frontiers.
Tether Makes Strategic Investment into Northern Data Group – Set to Become the Biggest Independent AI Player in Europe
— Tether (@Tether_to) September 21, 2023
Tether’s Forward-Looking Goals
Tether’s statement highlights that Northern Data’s focus on resilient data storage and high-performance computing aligns with Tether’s vision for the future. This strategic collaboration will leverage various technologies such as artificial intelligence and peer-to-peer communication.
“We are excited about this investment into Northern Data Group as it represents a fresh venture into new technological frontiers,” said Paolo Ardoino, Tether’s Chief Technology Officer.
Prior to the official announcement, Forbes reported that Tether had invested $420 million in Nvidia’s H100 cloud GPUs through an Irish shell company called Damoon. Additionally, Tether acquired a 20% stake in Northern Data as part of the deal.
“A media report from Forbes contained inaccuracies regarding Tether’s stake size in this investment,” clarified Tether.
Tether emphasizes that these investments have no impact on its reserves or customer funds. The company’s most recent report stated that it holds over $86 billion in assets, including $3.3 billion of excess reserves.
Crypto Firms Diversifying
Tether’s entry into artificial intelligence follows its previous investments in Bitcoin mining. The company has engaged in sustainable mining initiatives in Uruguay and participated in El Salvador’s $1 billion Bitcoin mining project.
The diversification of mining firms into AI is becoming increasingly common as they utilize their existing infrastructure and data centers to support high-performance computing. According to a report from JP Morgan, these services generate more profitability than Bitcoin mining itself.
Tether’s expansion into Northern Data Group further showcases the cryptocurrency industry’s efforts to explore new avenues beyond fintech.