Tether Expands Bitcoin Mining Operation With Purchase of Peak Mining

Northern Data, the German data center operator majority owned by stablecoin issuer Tether, has completed the sale of its Bitcoin mining subsidiary Peak Mining. The transaction, valued at up to $200 million, transfers ownership to a group of companies controlled by senior Tether executives. This move aligns with Northern Data's ongoing strategy to exit cryptocurrency mining and concentrate on artificial intelligence and high-performance computing infrastructure.

The sale was first announced in November without disclosing the buyers, as German regulations did not require it at the time. Subsequent regulatory filings in the United States, Canada, and the British Virgin Islands revealed the acquiring entities as Highland Group Mining Inc., Appalachian Energy LLC, and 2750418 Alberta ULC. These companies are linked to Tether co-founder and chairman Giancarlo Devasini, as well as Tether CEO Paolo Ardoino.

Complex Ownership Ties Emerge in the Deal

Highland Group Mining, registered in the British Virgin Islands, lists Devasini and Ardoino as directors according to corporate records reported by the Financial Times. The Alberta-based entity is solely directed by Devasini, while ownership details for the Delaware-registered Appalachian Energy remain undisclosed. This structure places Tether's top leadership on both sides of the transaction, given Northern Data's majority ownership by Tether. The deal represents the second attempt to divest Peak Mining to entities associated with Devasini, following a non-binding agreement in August with Elektron Energy for $235 million that did not proceed.

Northern Data's decision to sell Peak Mining reflects its broader pivot away from legacy Bitcoin operations. The company has positioned the shift as essential to capitalize on growing demand for AI and GPU-based computing. By shedding Bitcoin mining assets, Northern Data aims to streamline its focus on data centers equipped for high-performance tasks. The transaction occurred shortly before Rumble, a U.S. video-sharing platform where Tether holds approximately a 48% stake, agreed to acquire Northern Data in a deal valued at about $767 million.

Tether maintains significant financial exposure to Northern Data through a $718 million loan. Under the proposed Rumble acquisition, half of this loan balance would convert into Rumble shares, with the remainder refinanced via a new Tether loan to Rumble secured by Northern Data assets. Tether has also committed to a $100 million advertising agreement and a $150 million GPU services deal with Rumble, contingent on the acquisition's completion. These arrangements underscore the deepening integration among Tether, Northern Data, and Rumble.

Northern Data continues to face regulatory scrutiny in Europe. In September, authorities in Germany and Sweden raided the company's offices as part of an investigation into suspected large-scale VAT fraud, with potential damages exceeding $117 million. The company has described the probe as stemming from misunderstandings about the tax treatment of its GPU cloud computing and former mining activities. Northern Data maintains that it is cooperating fully with investigators and believes it complies with applicable standards.