Tether to spend $420 million on Nvidia graphics cards for German miner

The issuer of the largest-capitalized stablecoin by capitalization will get a 20% stake in Northern Data in an unusual deal

Tether, the entity responsible for the widely-used $86.5 billion USDT stablecoin, is set to allocate approximately $420 million towards the acquisition of 10,000 Nvidia H100 GPUs.

These graphics cards will be provided to the German mining firm known as Northern Data. In exchange for this significant investment, Tether will secure a 20% ownership stake in Northern Data, as reported by Forbes magazine. Northern Data intends to lease these GPUs to various AI startup companies.

Northern Data encountered difficulties in purchasing these GPUs directly from Nvidia due to their limited availability and high demand, as mentioned by Northern Data's CEO, Arush Tillainathan, in the publication. In August, the Financial Times disclosed that Nvidia was planning to ship a total of just 550,000 H100 graphics cards in 2023.

This partnership has the potential to establish Northern Data as the largest cloud GPU provider in Europe, according to Tillainathan. Previously, it was reported that the British government had set aside a budget of $120 million for GPU procurement, while Saudi Arabia acquired around 3,000 Nvidia H100 devices.

In late May, it was revealed that the issuer of USDT had decided to enter the realm of Bitcoin mining. They also announced investments in green electricity production and the launch of Bitcoin mining operations in Uruguay, utilizing this sustainable energy source. Additionally, in June, Tether participated in a funding round that raised $1 billion to establish the world's largest cryptocurrency mining facility in El Salvador.