Northern Data is borrowing $600 million from stablecoin issuer Tether in a bid to scale its cloud data center and bitcoin mining businesses, the firm said on Wednesday.
The German data center operator said it entered an unsecured debt financing facility with Tether totaling €575 million, or about $600 million. The facility is unsecured and has a term that extends until the end of 2029.
With a market capitalization of roughly $857 million, Northern Data said the proceeds are intended to expand its Taiga Cloud, Ardent Data Centers, and Peak Mining.
The debt financing follows Tether’s investment in Northern Data through a subsidiary called Damoon, which announced in September the purchase of $427 million worth of NVIDIA GPUs for generative AI cloud computing.
According to monthly production disclosures, Northern Data has not expanded its bitcoin mining capacity this year, which resulted in the decline of its market share to 0.61% in September.
It mined 174 bitcoin in September with a realization rate of 66% of its installed mining fleet, which was one of the lowest among its public peers. But Northern Data announced in September a $150 million preorder of 7 EH/s in MicroBT’s WhatsMiner M50 series.
Data center image via Northern Data