Northern Data AG, a German provider of high-performance computing solutions, has announced that it has secured a debt facility of up to $610 million from Tether, the world’s largest digital asset platform. The financing, which comes with a 5-year term, is expected to be used by Northern Data to expand its operations in the coming years and finance the purchase of new ASIC (Application Specific Integrated Circuit) equipment to mine cryptocurrencies.
ASICs are specialized chips designed to efficiently mine cryptocurrencies such as Bitcoin and Ethereum. ASICs were previously thought to be too expensive and inefficient, but recent technological advancements now make them competitive with other mining hardware. As such, Northern Data sees the purchase of ASICs as an attractive way to diversify its operations and generate additional revenue.
In addition to the debt financing, Northern Data also announced that it has struck a deal with Tether to use its services, such as the Tether dollar (USDT) stablecoin. Tether will provide liquidity to Northern Data, allowing it to purchase new ASICs and expand its operations.
The financing deal with Tether is seen as another sign that the mining sector is on the rise again. With the profitability of cryptocurrency mining increasing, more companies are likely to follow Northern Data’s example and invest in ASIC technology, creating a more competitive landscape for the industry.