Tether's Strategic Moves: Mining Firm Acquisition Raises Questions

Tether-backed Northern Data reportedly sold its Bitcoin mining business, Peak Mining, to three companies run by Tether executives. The sale, valued at up to $200 million, involved Highland Group Mining, Appalachian Energy, and an Alberta-based company led by Giancarlo Devasini, Tether co-founder and chair, and Paolo Ardoino, Tether's CEO.

Filings indicate that Devasini and Ardoino are directors of Highland Group, with Devasini being the sole director of the Alberta company, while the management of Delaware-based Appalachian Energy remains unclear.

Northern Data announced the divestment in November but did not disclose the buyers due to German regulatory requirements. This transaction occurred shortly before Tether's nearly 50% stake in video-sharing platform Rumble finalized an acquisition of Northern Data.

Notably, this is the second attempt to sell Peak Mining to a company controlled by Devasini, as a previous deal with Elektron Energy for $235 million collapsed amid whistleblower allegations. Northern Data is currently under investigation by European prosecutors for suspected tax fraud, with its offices raided in September.

Tether's complex financial ties also include a $100 million advertising deal with Rumble and a $150 million GPU services purchase as Tether expands into Bitcoin mining. Northern Data holds a €610 million loan from Tether, with half of the balance to be paid in Rumble stock and the remainder as a new loan from Tether to Rumble, secured against Northern Data assets.

Tether remains a dominant force in the stablecoin sector, with a 60% market share and a circulating supply of $187 billion in USDT, and is diversifying its investments into AI, video-sharing platforms, and even sports teams, including an unsuccessful $1.1 billion bid for Juventus Football Club.