Tether to Invest in Northern Data’s $233M Stock Issuance
Company was said to weigh a U.S. IPO for its combined AI and HPC business
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USDT issuer Tether is set to subscribe to a $233 million stock issuance planned by Northern Data, the Germany-headquartered bitcoin mining and data center operator.
Northern Data announced on Monday a plan to increase share capital by 20% through the issuance of 10.7 million new shares to raise €214 million ($233 million).
The funds raised will be directed towards further investments in Nvidia GPUs and the expansion of Northern Data’s high-performance computing capacities across Europe and the U.S, according to the release.
The capital increase will be structured in two phases. In the first phase, Tether, Northern Data’s majority shareholder, and an entity indirectly owned by CEO Aroosh Thillainathan will subscribe to 6.3 million of the new shares, corresponding to their current holdings.
In the second phase, the remaining shares will be offered to other major shareholders holding 50,000 shares or more, allowing them to participate pro rata. Any unsubscribed shares will also be taken up by Tether and Thillainathan.
“The new shares will be issued at EUR 20.00 each, a 1.7% premium over the volume-weighted average price on the last trading day before the announcement, ensuring no economic dilution for shareholders who do not participate,” the company stated.
This stock issuance follows reports by Bloomberg that Northern Data is considering a US IPO for its combined cloud computing and AI businesses. However, the Financial Times recently reported that two former directors have filed a lawsuit against Northern Data, alleging financial misrepresentation to investors.
In addition to its data center operations, Northern Data runs a bitcoin mining subsidiary, Peak Mining, which recently acquired a second 300-megawatt site in Corpus Christi, Texas.
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