Northern Data, the German AI and data-center firm in which Tether holds a majority stake, announced the sale of its cryptocurrency mining subsidiary, Peak Mining, to a consortium of companies tied directly to Tether leadership. Corporate filings reviewed by the Financial Times reveal that Highland Group Mining Inc., Appalachian Energy LLC, and 2750418 Alberta ULC—entities linked to Tether co-founder Giancarlo Devasini and CEO Paolo Ardoino—are the buyers. The purchase price of up to $200 million marks the second attempt to offload Peak Mining to Devasini-controlled entities, following a nonbinding $235 million offer that failed to close.
The sale agreement discloses that Highland Group Mining and Alberta ULC are under Devasini’s control, while Appalachian Energy’s ownership remains opaque. This divestment occurs just days before conservative video platform Rumble, in which Tether holds a significant stake, agreed to acquire Northern Data for approximately $767 million. Under the Rumble deal, half of Tether’s €610 million loan to Northern Data will convert into Rumble stock, with the balance restructured as new debt secured by Northern Data assets. Tether executives have committed further service and advertising agreements with Rumble, underscoring intertwined commercial interests.
Regulatory attention has mounted around Northern Data, with European authorities conducting VAT fraud raids across its German and Swedish offices. Allegations of related-party transactions and tax irregularities surfaced amid legal challenges and whistleblower suits, though Northern Data has denied wrongdoing. The timing of the Peak Mining divestment raises questions about corporate governance and disclosure obligations within jurisdictions that permit limited related-party reporting. Industry analysts note that transactions between a listed firm and entities linked to its majority shareholder demand heightened transparency to maintain investor confidence.
This transaction spotlights the expanding role of stablecoin issuers in cryptocurrency infrastructure. Tether’s deepening footprint in mining underscores the firm’s strategy to diversify beyond token issuance into asset-heavy operations. Market participants are monitoring how this sale affects Peak Mining’s operational continuity and how regulators will address potential conflicts of interest when dominant stakeholders transact with affiliated entities. Northern Data’s shareholders and creditors await further details as closing conditions approach, with the mining arm’s transfer expected to reshape the company’s balance sheet and strategic focus.
Comments (0)