Quick Takeaways
- Northern Data sold Peak Mining to firms linked to Tether executives for up to $200 million.
- The deal was not disclosed as a related-party transaction under German rules.
- The sale came just before Tether-backed Rumble agreed to acquire Northern Data.
Northern Data’s sale of its bitcoin mining business is drawing fresh scrutiny. New filings show the buyers were linked to Tether’s own top executives. The German-listed data center firm sold Peak Mining in November. The transaction was valued at up to $200 million.
At the time, Northern Data did not identify the buyers. U.S. and international filings later revealed key details. According to the Financial Times, the purchasers were entities controlled by Tether leaders. The revelation raises governance and disclosure questions.
Buyers Tied to Tether Leadership
The buyers included Highland Group Mining Inc. They also included Appalachian Energy LLC and 2750418 Alberta ULC. British Virgin Islands records link Highland Group Mining to Giancarlo Devasini. Devasini is Tether’s co-founder and chairman.
The same filings also list Tether CEO Paolo Ardoino as a controlling figure. Canadian records name Devasini as the sole director of Alberta ULC. The ownership of Appalachian Energy remains unclear. Delaware filings list no public directors.
Together, the documents show Tether executives on both sides of the deal. Northern Data did not disclose this relationship.
Disclosure Rules Leave a Gap
Northern Data is listed on a secondary German exchange. That market requires limited corporate disclosures. Importantly, it does not mandate reporting related-party transactions. As a result, the company faced no obligation to name the buyers.
The structure allowed the deal to proceed quietly. Investors only learned the details through foreign filings. This was not the first attempt to sell Peak Mining. In August, Northern Data announced a planned sale to Elektron Energy.
That deal valued the unit at $235 million. Elektron Energy is also controlled by Devasini. The agreement never closed. Peak Mining later sold for a lower price.
Timing Tied to Rumble Deal
The sale came days before a major announcement. Tether-backed Rumble agreed to acquire Northern Data.The business combination was valued at about $767 million. Tether owns roughly 48% of Rumble.
As part of the deal, Tether committed to large commercial agreements. These included $150 million in GPU services. Tether also signed a $100 million advertising agreement. In addition, it extended a €610 million loan to Northern Data.
Half of that loan will convert into Rumble stock. The rest becomes a new loan secured by Northern Data assets. Neither Tether nor Northern Data commented publicly. Rumble also declined to respond.
Regulatory Scrutiny Intensifies
The Peak Mining sale comes amid broader regulatory pressure. European authorities raided Northern Data offices in September. The raids targeted sites in Germany and Sweden. They are rarely linked to alleged VAT fraud exceeding €100 million.
Northern Data denied wrongdoing. The firm cited tax treatment misunderstandings. The investigation followed a lawsuit by former executives. They alleged insolvency and tax evasion.
Those claims were later withdrawn. Northern Data called the suit bad-faith litigation. No settlement details were disclosed. Regulators continue to examine the company’s operations.
Tether’s Expanding Mining Strategy
Tether remains deeply invested in bitcoin mining. It owns about 54% of Northern Data. CEO Ardoino has outlined ambitious plans. He wants Tether to become the largest bitcoin miner by 2025.The company holds over $10 billion in bitcoin. Mining helps secure that exposure. Tether has invested more than $2 billion in infrastructure. Projects span Uruguay, Paraguay, and El Salvador. Still, risks remain.
S&P Global recently downgraded USDT’s stability assessment. The agency cited growing bitcoin exposure. It warned of undercollateralization during market stress. As scrutiny grows, related-party deals may attract more attention. Investors and regulators are watching closely.