Tether, a stablecoin issuer, has acquired an undisclosed stake in German-based crypto miner Northern Data Group. This strategic investment hints at potential collaborations in artificial intelligence (AI). Tether made this investment through its group company, Damoon. However, Tether has not disclosed the amount of capital allocated for this partnership.
Ardoino Describes Tether’s Dive into Tech Industry
Although a speculative report by Forbes reported a 420-million transaction, Tether neither confirmed nor refuted the exact figure. Moreover, prior discussions between Tether and Northern Data in July revealed that the stablecoin giant had ambitions to bolster Damoon, a Tether group company, before it finalized the acquisition. By doing so, Damoon aimed to procure the latest GPU hardware. Reflecting on the venture, Paolo Ardoino, Tether’s CTO, portrayed it as a dive into the new technological industry.
Additionally, the company stated that this investment wouldn’t dip into its reserves, ensuring customer funds remain unaffected. Tether’s past has been controversial, especially in the U.S., where it faced legal challenges over its reserve transparency, leading to hefty fines and increased scrutiny.
Tether Expands Global Reach with Diverse Partnerships
Beyond its recent stake in Northern Data, Tether’s global influence is evident with Partnerships, from collaborating with KriptonMarket in Argentina to signing an MOU to bolster peer-to-peer (P2P) infrastructure in Georgia. Additionally, Ardoino hinted at some of the firm’s mining activities taking root in Latin America.
Coingape has recently reported that Tether Holdings has initiated USDT stablecoin loans to clientele. This move, however, has raised eyebrows. It’s been a year since Tether pledged to abstain from proffering secured loans. The company’s dominance in the stablecoin world makes this development noteworthy.
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