Topics

Posted 9/20/2023, 4:56:48 PM

Tether Spends $420M on GPUs for Controversial Bitcoin Miner Pivoting to AI Cloud Services

Stablecoin company Tether spent $420 million on 10,000 Nvidia H100 GPU chips, gaining a 20% stake in bitcoin miner Northern Data which will rent the chips to AI startups.
The deal makes Northern Data one of the largest cloud GPU providers in Europe, though it has a controversial track record of using shell companies and missed financial targets.
Tether's investment is unusual given its stablecoin is meant to be backed 11 with dollars, and its cash reserves have plunged despite claimed profits.
Northern Data plans to switch from bitcoin mining to renting GPUs to AI startups, following other miners making the pivot as ethereum mining became unprofitable.
The convoluted deal sees Tether buy the GPUs through a shell company owned 70% by Northern Data, which will give it the 20% stake in return.

forbes.com

Relevant topic timeline:

8/25/2023

Tether maintains $3.3B in liquidity cushion: USDT transparency report

Tether maintains a liquidity cushion of nearly $3.3 billion to provide stability and trust in its ecosystem, with reserves totaling $86.1 billion, confirming a backing of over 100%.

8/27/2023

OnlyFans Purchased $20 Million of ETH

Tether (USDT) is the world's largest stablecoin with over $66 billion in market capitalization, despite controversies surrounding its collateral and reserve holdings.

9/19/2023

Tether Authorizes $1B in USDT to Boost Liquidity on Tron Network

Blockchain trackers have flagged a $1 billion authorization of Tether (USDT) in Tether's Treasury, which will be used to replenish the Tron network for issuance requests and chain swaps.

9/21/2023

Tether Expands Beyond Stablecoins, Invests in AI Through Partnership with Northern Data Group

Stablecoin issuer Tether has partnered with data firm Northern Data Group to venture into artificial intelligence by purchasing €400 million worth of Nvidia graphic processing units, which will be deployed through Northern Data's cloud service.

9/21/2023

Tether Loans Rise in 2023 Despite Previous Pledge to End Controversial Program

Despite announcing its plans to eliminate secured loans, Tether, the largest stablecoin issuer, has experienced a rise in such loans in 2023, with $5.5 billion of loans in its recent quarterly report, although it aims to reduce this to zero by 2024.

9/21/2023

Tether Invests in Bitcoin Miner Northern Data, Hints at AI Collaboration

Tether, the firm behind stablecoin USDT, has made a strategic investment in crypto miner Northern Data Group in support of artificial intelligence initiatives and potential collaborations involving AI, P2P communications, and data storage solutions.

9/26/2023

Fed Report Finds Stablecoins Have Similar Risks to Money Market Funds

A new report by the Federal Reserve Banks of Boston and New York concludes that stablecoins, such as Tether and USD Coin, have similar vulnerabilities as money market funds and could potentially inject instability into the broader financial system.

10/16/2023

Tether Freezes Nearly $1 Million in USDT Linked to Terrorist Activity

Stablecoin issuer Tether freezes addresses containing $873,000 USDT linked to illicit activity in Israel and Ukraine, collaborating with local law enforcement agencies to block the use of funds linked to terrorist financing.

10/16/2023

Tether Freezes Nearly $1M in Crypto Linked to Terrorism in Israel and Ukraine

Stablecoin issuer Tether has frozen funds in 32 cryptocurrency addresses linked to terrorism and warfare in Israel and Ukraine, working with Israel's National Bureau for Counter Terror Financing (NBCTF) in an effort to counter cryptocurrency-funded terrorism and warfare.

Topics

Posted 9/20/2023, 4:56:48 PM

Tether Spends $420M on GPUs for Controversial Bitcoin Miner Pivoting to AI Cloud Services

Stablecoin company Tether spent $420 million on 10,000 Nvidia H100 GPU chips, gaining a 20% stake in bitcoin miner Northern Data which will rent the chips to AI startups.
The deal makes Northern Data one of the largest cloud GPU providers in Europe, though it has a controversial track record of using shell companies and missed financial targets.
Tether's investment is unusual given its stablecoin is meant to be backed 11 with dollars, and its cash reserves have plunged despite claimed profits.
Northern Data plans to switch from bitcoin mining to renting GPUs to AI startups, following other miners making the pivot as ethereum mining became unprofitable.
The convoluted deal sees Tether buy the GPUs through a shell company owned 70% by Northern Data, which will give it the 20% stake in return.

forbes.com

Relevant topic timeline:

8/25/2023

Tether maintains $3.3B in liquidity cushion: USDT transparency report

Tether maintains a liquidity cushion of nearly $3.3 billion to provide stability and trust in its ecosystem, with reserves totaling $86.1 billion, confirming a backing of over 100%.

8/27/2023

OnlyFans Purchased $20 Million of ETH

Tether (USDT) is the world's largest stablecoin with over $66 billion in market capitalization, despite controversies surrounding its collateral and reserve holdings.

9/19/2023

Tether Authorizes $1B in USDT to Boost Liquidity on Tron Network

Blockchain trackers have flagged a $1 billion authorization of Tether (USDT) in Tether's Treasury, which will be used to replenish the Tron network for issuance requests and chain swaps.

9/21/2023

Tether Expands Beyond Stablecoins, Invests in AI Through Partnership with Northern Data Group

9/21/2023

Tether Loans Rise in 2023 Despite Previous Pledge to End Controversial Program

9/21/2023

Tether Invests in Bitcoin Miner Northern Data, Hints at AI Collaboration

9/26/2023

Fed Report Finds Stablecoins Have Similar Risks to Money Market Funds

10/16/2023

Tether Freezes Nearly $1 Million in USDT Linked to Terrorist Activity

10/16/2023

Tether Freezes Nearly $1M in Crypto Linked to Terrorism in Israel and Ukraine