Tether Executives Buy Bitcoin Mining Business Northern Data Amid Tax Fraud Investigations

Bitcoin Mining Business of Northern Data Acquired

The global data centre operator, Northern Data, sold its Bitcoin mining sector to a trio of businesses. The companies that acquired the entity reportedly include top-level executives from the digital currency, Tether. The transaction has made significant waves in the crypto and digital market industry, steering a fresh conversation about the future of digital currencies and online business.

Companies Involved in the Acquisition

According to reliable reports, the Bitcoin mining business of Northern Data, Peak Mining, was sold for around $200 million. The acquisition included three major shareholders – Highland Group Mining, Appalachian Energy, and a company based in Alberta. These businesses are managed by some of the prominent names in the digital currency world, including Tether co-founder and chairman, Giancarlo Devasini, and CEO, Paolo Ardoino.

Key Players

It is noteworthy that Devasini and Ardoino play prominent roles in the executing firms. For instance, they reportedly fill director positions at Highland Group. Meanwhile, Devasini is the sole director of the Alberta-based company involved in the transaction. However, it remains slightly unclear who maintains the helm of control for the Appalachian Energy company based in Delaware.

Significance of the Deal

Historically, Northern Data had first hinted at the divestment of Peak Mining in November. However, the buyer maintaining operational control was not revealed due to regulatory requirements set by German authorities. Interestingly, this move was executed a few moments prior to the agreement of video-sharing platform Rumble, where Tether maintains nearly half the stake, to acquire Northern Data. Yet, this is not the first instance where an attempt was made to sell Peak Mining to a company controlled by Devasini. The digital currency world once came abuzz in August when a similar deal was orchestrated with Elektron Energy. However, the proposed $235 million transaction was eventually discarded amidst whistleblower allegations.

Tax Fraud Allegations

Currently, Northern Data is subject to a detailed investigation by European prosecutors. They suspect tax fraud within the operations of the company. Adding to these speculations, Northern Data’s office was subjected to a raid in September.

Future Plans

Furthermore, in a move to deepen its venture into Bitcoin mining, it is reported that Tether has also agreed on a significant $100 million advertising deal with Rumble. The monetary exchange suggests that Tether plans to buy processing units worth $150 million from Rumble. Impressively, Tether currently holds a loan agreement worth 710 million euros or $715 million with Northern Data. The esteemed issuer of the stablecoin is speculated to receive half the loan balance in Rumble stock as part of the acquisition. The remaining balance will be paid in the form of a new loan from Tether to Rumble. This loan will be secured against the Northern Data assets, creating a blanket of security for the investment both parties have invested in.

The Dominance of Tether

Today, Tether stands determinedly at the forefront as the world’s top player in the stablecoin sector. The company commands an impressive 60% market share and boosts of $187 billion circulating in the supply of the USDT currency. Apart from its intrinsic interests in Bitcoin mining and Artificial Intelligence, Tether has also broadened its pursuits to the acquisition of sports teams. Last December, Tether launched a $1.1 billion bid to acquire Italian professional soccer club, Juventus Football Club. However, this ambitious bid was unanimously turned down by the club owners.