The agency behind stablecoin Tether (USDT) has invested an undisclosed quantity into German-based crypto miner Northern Data Group in a transfer backing synthetic intelligence (AI) initiatives.
In a Sept. 21 weblog submit, Tether said the strategic funding into Northern Data via Tether group firm Damoon was supposed to show “its determination to support emerging technology,” hinting at collaborations involving AI, peer-to-peer communications and knowledge storage options. The firm denied a report from Forbes regarding a $420-million funding however didn’t specify the precise quantity when reached for remark. Cointelegraph additionally reached out to Northern Data however didn’t obtain a response at the time of publication.
Northern Data announced in July that it had reached an settlement with Tether to accumulate Damoon, a deal in which the stablecoin issuer “agreed to capitalize Damoon prior to completion of the acquisition with the funds needed to acquire latest-generation GPU hardware.” Tether chief expertise officer Paolo Ardoino described the funding as a ”contemporary enterprise into new technological frontiers.”
Tether Makes Strategic Investment into Northern Data Group – Set to Become the Biggest Independent AI Player in Europe
Read extra:https://t.co/L4F6V10ruk
— Tether (@Tether_to) September 21, 2023
Tether claimed the funding was “separate from [its] reserves” and wouldn’t influence buyer funds. The agency beforehand confronted authorized motion in the United States following accusations it had not been totally clear about its reserves, ensuing in tens of millions of {dollars} in fines and orders to provide reports on USDT’s backing.
Related: Tether stablecoin loans rise in 2023 despite downsizing announcement in 2022
As the most important stablecoin issuer by market capitalization at greater than $83 billion, Tether has made many investments globally, from partnering with Kriptonmarket in Argentina to signing a memorandum of understanding to assist develop peer-to-peer infrastructure with the federal government of Georgia. In August, Ardoino revealed a number of the agency’s mining operations have been based in Latin America, although it’s unclear if they may broaden to Germany following the cope with Northern Data.
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