Tether Executives Take Over Northern Data’s Bitcoin Mining Arm

Northern Data, the German data center and AI infrastructure firm majority-owned by stablecoin issuer Tether, has sold its Bitcoin mining subsidiary, Peak Mining, to companies controlled by Tether’s own top executives, according to corporate filings reviewed by the Financial Times.

The mining unit was divested in November for a price reported to be as high as $200 million. The buyers include Highland Group Mining, Appalachian Energy, and a Canada-based entity, all of which are linked to Tether’s leadership. Records show that Highland Group Mining is controlled by Tether co-founder and chairman Giancarlo Devasini and CEO Paolo Ardoino, while Devasini is listed as the sole director of the Canadian company. Ownership details for Appalachian Energy, registered in Delaware, remain undisclosed.

While Northern Data publicly announced the sale of Peak Mining last month, it did not name the buyers. The company’s listing on a secondary German market does not require disclosure of related-party transactions, allowing the deal to proceed without formally acknowledging the overlap between buyer and seller.

The transaction was not the first attempt to sell the mining arm to entities connected to Devasini. Earlier this year, Northern Data entered a nonbinding agreement to sell Peak Mining to Elektron Energy for $235 million. That deal ultimately collapsed, and Elektron was also linked to Devasini through offshore filings.

The timing of the sale has drawn attention. Just days after Northern Data disclosed the divestment, video-sharing platform Rumble, in which Tether owns roughly 48%, announced a $767 million agreement to acquire Northern Data. As part of the broader arrangement, Tether committed to purchasing $150 million in GPU services from Rumble and signed a separate $100 million advertising agreement.

Northern Data is also carrying a €610 million loan from Tether. Under the terms of the Rumble acquisition, half of that debt is expected to convert into Rumble equity, with the remainder restructured into a new loan secured against Northern Data’s assets.

The sale comes as Northern Data remains under regulatory scrutiny in Europe. In September, authorities in Germany and Sweden raided the company’s offices as part of an investigation into suspected VAT fraud potentially exceeding €100 million. Northern Data has denied wrongdoing, attributing the probe to a misunderstanding related to the tax treatment of its GPU cloud services and legacy crypto mining operations.

The company has also faced internal legal challenges. Former executives previously accused Northern Data of financial mismanagement and tax irregularities, though those claims were later withdrawn and the lawsuit dismissed without public disclosure of settlement details.

For Tether, the transaction fits into a broader strategy to expand beyond stablecoins and deepen its involvement in Bitcoin mining, AI infrastructure, and digital media. CEO Paolo Ardoino has previously stated that Tether aims to become one of the world’s largest Bitcoin miners by the end of 2025, citing the need to safeguard the company’s substantial Bitcoin reserves. Tether has invested billions of dollars in mining and energy projects across Latin America.

Still, the stablecoin issuer faces mounting scrutiny of its own. S&P Global Ratings recently downgraded its assessment of USDT’s stability, warning that Tether’s growing Bitcoin exposure could pose risks during periods of market stress.

Together, the Peak Mining sale and the surrounding web of financial relationships highlight the increasingly complex structure underpinning Tether’s expanding empire, one that now spans stablecoins, mining, AI infrastructure, media platforms, and global trade, while continuing to attract close attention from regulators and markets alike.