In an unexpected move, Tether Group, the cryptocurrency company behind $86.5 billion stablecoin giant Tether, has made a strategic investment in Northern Data Group, a controversial Bitcoin miner registered in Germany.
The deal, which included a high amount of $420 million for a total of 10,000 H100 GPUs, not only positioned Tether as a new competitor in the technology sector, but also gave it a 20% stake in Northern Data.
Nvidia's H100 GPUs have become a darling of the tech industry, with startups and AI companies looking to buy this $40,000 chip for its superior data processing capabilities. Northern Data plans to rent these chips to artificial intelligence startups.
Tether's CTO Paolo Ardoino expressed his excitement about the investment:
“We are excited as this investment in Northern Data Group represents a fresh initiative towards new technological horizons. “This investment underscores our commitment to responsible growth and innovation while preserving the strength and integrity of the reserves of Tether tokens.”
Tether actually did not officially announce the size of this investment. The amount of $420 million given by Forbes was not denied by the company, but it was stated that the 20% share rate contained incorrect information.
*This is not investment advice.