Stablecoin giant has made a significant strategic investment into German-based cryptocurrency mining firm, Northern Data Group, marking its entry into the artificial intelligence (AI) sector. The announcement was made on Friday, and while the exact investment figures remain undisclosed, industry rumors suggest a potential $420 million deal.
The move to invest in Northern Data Group is not Tether’s first foray into sectors beyond fintech. The company, which has an $83 billion market capitalization, has previously invested in energy production, bitcoin mining, and communications technology. This recent investment underscores Tether’s commitment to supporting emerging technologies and expanding its global footprint.
Northern Data Group specializes in resilient data storage and high-performance computing, areas that align with Tether’s forward-looking perspective. Both companies aim to develop accessible solutions that benefit communities worldwide.
Paolo Ardoino, Tether’s Chief Technical Officer, expressed excitement about the venture into new technological frontiers. He also reassured stakeholders that the investment would not impact Tether’s reserves or customer funds. This assurance is particularly significant given Tether’s controversial past marked by concerns over its reserve transparency which led to legal challenges and increased regulatory oversight.
In addition to its investment strategies, Tether has been making headlines for other recent developments. The firm has launched a program offering USDT stablecoin loans to its customers, a move that contradicts its previous commitment made just a year ago to abstain from such practices. This decision has drawn attention from both industry stakeholders and regulators.
Tether’s global endeavors are evident through various collaborations across different countries. Notable partnerships include KriptonMarket in Argentina aimed at furthering the digital currency landscape in South America and a Memorandum of Understanding (MOU) in Georgia to strengthen the peer-to-peer infrastructure in the country. Ardoino also hinted at some of Tether’s mining activities branching out to Latin America, signaling its intent to tap into the potential of emerging economies and their rapidly evolving digital infrastructure.
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