Northern Data Sells Peak Mining to Tether-Linked Firms in Up to $200M Deal

Northern Data has reportedly sold its Bitcoin mining arm, Peak Mining, to a consortium of companies associated with senior executives from Tether, in a transaction valued at up to $200 million.

Key Takeaways

Northern Data has sold Peak Mining to firms linked to Tether for a deal potentially worth up to $200 million.
This transaction came just before Rumble's acquisition of Northern Data, revealing deeper financial connections.
Tether maintains significant exposure through a €610 million loan connected to the deal.

A report from the Financial Times reveals that the buyers include Highland Group Mining, Appalachian Energy, and a company from Alberta linked to Tether co-founder and chairman Giancarlo Devasini, alongside CEO Paolo Ardoino. Corporate documents indicate that both Devasini and Ardoino are directors at Highland Group, with Devasini being the sole director for the Alberta-based firm.

Northern Data Sells Peak Mining to Tether-Linked Firms in Deal Worth Up to $200M

Northern Data's Sale of Peak Mining Precedes Rumble Acquisition

Northern Data initially announced plans to divest Peak Mining in November, but did not disclose the buyers at that time due to German disclosure regulations. The sale occurred shortly before video-sharing platform Rumble, in which Tether holds nearly a 50% stake, agreed to acquire Northern Data, creating a complex web of financial ties as outlined by the FT.

The ownership and management structure of the Delaware-based Appalachian Energy remains obscured. This sale of Peak Mining represents the second attempt to transfer the operation to a Devasini-controlled organization, following a previous August deal with Elektron Energy valued at $235 million, which fell through amid whistleblower claims.

Currently, Northern Data is facing scrutiny from European authorities related to potential tax fraud, with reports indicating that company offices were raided in September.

Beyond this sale, Tether's financial involvement with Northern Data is significant, as the company has a €610 million ($715 million) loan from Tether. As part of Rumble's acquisition of Northern Data, Tether is set to receive half of this loan amount in shares of Rumble, while the balance will be refinanced through a new loan to Rumble from Tether, secured against Northern Data’s assets.

Tether Enhances Its Relationship with Rumble through a $100M Advertising Deal

In addition, Tether has strengthened its partnership with Rumble through a $100 million advertising deal and has plans to buy $150 million worth of GPU services, furthering its investments in Bitcoin mining and artificial intelligence infrastructure. Reports have indicated that Rumble is looking at introducing Bitcoin tipping for its 51 million monthly users, with an anticipated rollout targeting early to mid-December after refining the user experience and addressing bugs.

The company is collaborating with MoonPay to enable in-app cryptocurrency wallets and made a strategic decision to adopt a Bitcoin treasury approach back in March, accumulating 211 BTC valued at around $22.3 million.

While USDT remains at the core of Tether's operations, boasting approximately 60% market share and a circulating supply of $187 billion, Tether has increasingly ventured into various new sectors. These include mining, AI technologies, and media platforms, as well as sports investments, highlighted by a rejected $1.1 billion bid for Italy’s Juventus Football Club back in December.