What to Know:
- Northern Data sold its Peak Mining unit for up to $200 million to entities linked to Tether executives, with regulatory filings naming Highland Group Mining, Appalachian Energy, and 2750418 Alberta ULC as the buyers.
- Corporate records tie the acquiring firms directly to Tether’s leadership, showing co-founder Giancarlo Devasini and CEO Paolo Ardoino holding director roles, effectively transferring the mining business to companies they control.
- The deal deepens scrutiny of Northern Data’s governance and financial ties, coming ahead of Rumble’s $767 million acquisition plan.
Northern Data, the German-listed data center operator majority-owned by stablecoin issuer Tether, has sold its Bitcoin mining subsidiary to companies controlled by Tether’s own senior executives.
Tether-Controlled Company Sells Bitcoin Mining Unit
In November, Northern Data disclosed that it had agreed to sell Peak Mining, its Bitcoin mining business, for consideration of up to $200 million. Subsequent regulatory filings in the United States identified the buyers as Highland Group Mining Inc, Appalachian Energy LLC, and 2750418 Alberta ULC.
Corporate records show close ties between the buyers and Tether’s leadership. A filing in the British Virgin Islands lists Giancarlo Devasini, Tether’s co-founder and chairman, and Paolo Ardoino, its chief executive, as directors of Highland Group Mining. Canadian company documents name Devasini as the sole director of 2750418 Alberta ULC. Appalachian Energy, which is registered in Delaware, has not publicly disclosed its management.
The transaction places control of a former Northern Data asset in the hands of entities run by the same executives who lead Tether, the world’s largest stablecoin issuer. Tether has roughly $186 billion worth of its USDT token in circulation and has used the profits from that business to expand into a wide range of sectors, including artificial intelligence infrastructure, energy, agriculture, and sports.
As per reports, the sale of Peak Mining came shortly before another major announcement involving Northern Data. Conservative social media platform Rumble, in which Tether holds close to a 50 percent stake, agreed in November to acquire Northern Data in a deal valued at around $767 million. Under the proposed transaction, Rumble would absorb the AI-focused data center group, further tightening financial links between the companies.
Tether affiliates already exert significant influence over Northern Data. An entity linked to Ardoino, together with another major shareholder, controls about 72 percent of the company. Northern Data’s market capitalization currently stands at roughly €885 million. Its shareholder base also includes Christian Angermayer, a German investor who has backed unconventional sports ventures and relocated to Lugano, Switzerland, a city that has attracted several crypto executives, including Devasini and Ardoino.
The Peak Mining sale followed an earlier, aborted attempt to transfer the business to another Devasini-linked entity. In August, Northern Data said it had entered into a non-binding agreement to sell the mining unit for $235 million to Elektron Energy, described at the time as a privately held Bitcoin mining firm. Corporate filings later showed Devasini as a director of that company as well.
Northern Data is listed on a regulated unofficial market in Germany, which requires companies to publish certain price-sensitive disclosures but does not mandate detailed reporting of related-party transactions. That regulatory structure has drawn attention as the company navigates a period of heightened scrutiny.
In September, European prosecutors carried out raids on Northern Data’s offices in Germany and Sweden as part of an investigation into suspected large-scale value-added tax fraud. Authorities are examining whether unpaid taxes exceeded €100 million. Northern Data has denied any wrongdoing, saying the inquiry stems from a misunderstanding over the tax treatment of its GPU-based cloud computing services and the structure of its legacy crypto mining operations. The company has said it is cooperating with investigators and believes it complies with international tax rules.
Financial ties between Tether, Rumble, and Northern Data extend beyond equity stakes. Northern Data has a €610 million loan from Tether. As part of the Rumble acquisition, half of that loan would be settled in Rumble shares, with the remainder replaced by a new Tether loan to Rumble secured against Northern Data’s assets. Tether has also agreed to a $100 million advertising deal with Rumble and plans to purchase $150 million in GPU services from the platform once the acquisition is completed.
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