Northern Data Secures $609M Loan From Tether to Support Bitcoin Mining Operations

Northern Data AG, the largest Bitcoin (BTC) mining company in Europe, has received 575 million euros (Approx. $609.7 million) debt financing facility from stablecoin issuer Tether. According to a press release on Thursday, the loan is unsecured and has a term until January 1, 2030.

Scaling Mining Operations 

Northern Data noted that part of the loan will be used to further scale its Bitcoin mining operations with “purpose-built, liquid-cooling mining technology” through its mining business dubbed “Peak Mining.”

In a recent update, Northern Data revealed that during September, its mining business mined 174 BTC and generated 4.3 million euros ($4.5 million) in revenue. During the same month, the company acquired over 7 Exahashs (EH/s) of mining hardware from MicroBT, valued at $150 million. 

At the same time, Peak Mining had a self-mining hash rate of 3.75 EH/s and installed 40,248 ASIC servers. The company said it generated 43.7 million euros ($46.2 million) in Bitcoin revenue since the beginning of this year.

Expanding Business Operations

Meanwhile, the latest debt facility will not focus mainly on Peak Mining. As stated by Northern Data, the main focus of the facility will go to the acquisition of additional hardware that will help the company’s cloud business to expand operations as a generative artificial intelligence (AI) cloud service provider in Europe. The company added that part of the loan will also help expand its portfolio of data centers and enhance its existing operations.

Northern Data is a Germany-based technology company that provides computing solutions to businesses and research institutions through its three core business divisions, including Taiga Cloud, Ardent Data Centers, and Peak Mining. 

The latest development comes as the price of Bitcoin continues to maintain an upward trajectory. At the time of filing this report, BTC was trading at $35,214, representing a 2.05% increase in the last seven days.